Commercial Leasing for Tenants
From a Tenant’s Perspective
When you consider that one of your most important business assets is your lease, as a tenant it becomes critical that you understand the implications of a lease and your rights and obligations.
In fact, your premises are the most tangible component of your business and your goodwill is affected by your location, so why risk losing it all over a lease dispute?
Expert legal advice will ensure that your needs and your rights are taken into account during a lease negotiation. Not only will it enhance your business opportunities, but in the event that you choose to sell your business, a sound and secure lease is vitally important and could make or break the deal.
When you have found the right premises, in the right location for your business, some of the specific issues you need to consider when negotiating the lease include:
- Whether you can gain the relevant licences (eg liquor licence) and the relevant approvals from Council to run your business within the premises.
- What warranties you are able to secure from the landlord regarding damage to the building etc and whether you are covered in case of the need for relocation or demolition of the building.
- How, and when, the rent will be reviewed and what your responsibilities are in terms of outgoings.
- What is the term of the lease and when are you able to exercise any options for renewal – you will also need to carefully diarise reminders to ensure that you meet the relevant requirements for exercising these options.