Leases – Business & Commercial Retail
Business Property and Commercial Retail Leases are legally binding contracts between a business owner and the owner of the real estate premises from which the business is conducted.
These leases are more complicated than residential leases, because the lease is usually customised to the particular situation.
The lease terms and conditions need to be very carefully read and understood, as any mistakes could have a serious impact.
At the outset, lease terms are often negotiable. The specific terms or restrictions may be negotiated including the rent amount, rent increases, the duration of the lease, whether you can transfer or assign the lease, modifications you can make to the property and any other obligations you may have.
Some of the common things we advise clients when considering leases include:
- If your business is new, check that the length of the lease suits you, because landlords may prefer to lock in a longer lease
- There are many ways to calculate rental increases so ensure that you understand the one suggested by your lessor
- Property improvements and alterations – who can make the changes, who pays for the modifications and whether you have to return the property to its original condition at the end of the lease
- Ensure the lease includes, or provides access to, all of the areas you expect to be using including bathrooms, parking areas and common areas
- Erecting signage
- Outgoings and charges in addition to the rent
- What other rights (or obligations) you have
Seek legal advice before making any commitments, including signing an offer, paying a deposit or moving anything you own into the property.
If a dispute arises, it is critical that you:
- Completely understand the legal terms and conditions
- Understand your legal rights and responsibilities and those of your landlord, and
- Consider the options, which include negotiation, mediation and court action.
Make an appointment with Stuart Garrett Lawyers today to discuss your Business leasing need with one of our experienced business lawyers.