Key things to check before entering into a commercial lease

Are you looking at entering into a Commercial Lease? Here are some key things to check before you sign!

Key things to check before you enter into a Commercial Lease:

Know what you are paying

Aside from the Lease amount, you will be liable for outgoings. Ensure you have received a signed Disclosure Statement from the Landlord which clearly outlines the amount of outgoings you will also have to pay.

Check for rent reviews and ensure you factor in the increased rent as disclosed in the Lease and Disclosure Statement.

Do you have any options to extend the lease?

Does the Lease grant you any options to renew the lease beyond the initial lease term? Have you considered the implications and costs of not having any option to renew the Lease?

If the Lease provides options to renew, ensure you are aware of the dates by which you must exercise your rights to renew the Lease. If you do not exercise your rights, your Lease may not be renewed.

Permitted use

Ensure you have understood the permitted use of the premise and that you have obtained relevant permits if required. If your business or your use of the premise changes, will these changes still be a permitted use? If they are not, you may in breach of the Lease.

Assigning or sub-letting

If you intend to sub-let some of the premise, ensure you have checked that the Lease permits this and that approval from the Landlord has been obtained.

Removal of installations at the end of the Lease

Have you factored in the cost of removing all installations and returning the premise to the same condition it was in at the Lease commencement?

Is it a Retail Lease or Commercial Lease?

There is often a lot of confusion as to whether a Commercial Lease is actually a Retail Lease. This will impact your rights and obligations so ensure you have obtained advice on this before you sign!

Do you need assistance?

If you need advice on a Commercial Lease, whether you are a tenant or landlord, Trish is one of few Accredited Property Law Specialists in Victoria so you can be sure you are in good hands!