Platinum Property Law is your one stop Lease shop.

We often hear from clients who have had horror stories in relation to:

• Getting a Lease agreement prepared; or

• Getting advice on a Lease agreement.

They complain that it was slow and unnecessarily complicated and expensive.

 

A Suite Of Lease Precedents

At Platinum Property Law we are a Lease shop. We have a suite of precedent Leases that we can tailor to suit your individual leasing needs including:

• Residential Leases
• Retail Leases
• Factory Leases
• Office Leases
• General Commercial Leases

 

Commercial Leases

A commercial lease is a contract between a Landlord (Lessor) and a Tenant (Lessee) for the rental of commercial property.

Before signing a commercial lease, it is important to obtain legal advice so that you fully understand the lease contract. It sets out the rights and responsibilities of each party including matters such as:

 

(a)    The Lease Term.

The term of the lease is important when negotiating a commercial lease agreement. Negotiate flexibility into the term and try to get an option of the lease to ensure that you do not have to relocate your business at a time that does not suit you.

Usually there will be a clause which gives you an opportunity to renew your lease between three and six months before the end of your lease.

 

(b)   Rent and Reviews

The rent and rent reviews are negotiated between the landlord and tenant. There is no law in NSW that regulates what the rent should be, or how it should be increased.

The amount of the initial rent and the timing and basis of any rent reviews should be set out in the lease agreement. For example a rent review may be based on factors such as market rent, CPI increases, sales figures etc.

Rent for a commercial lease may be inclusive of outgoings such as water rates, council rates, land tax, management fees and strata or other fees, or these may be additional. The lease agreement should set out all the outgoings that you will be responsible for.

The lease agreement should also be clear about how the GST will be dealt with.

 

(c)    Bond

Under a commercial lease agreement the bond may be in the form of a cash deposit or a bank guarantee.

The lease agreement must specify when the bond will be returned to the tenant after the lease has ended and when the landlord can withhold funds from the bond.

 

(d)   Fixtures and Fittings

In NSW unless otherwise agreed, tenants generally pay the cost of installing any fixtures and fittings. When the lease has ended, tenants usually remove the fit-out and return the premises to the condition they were in before the lease began. This means they ‘make good’ the premises.

It is important that any lease agreement contains a list of the landlord’s fixtures and fittings and of the tenant’s right (if any) to install and remove fixtures.

 

(e)    Repairs and Maintenance

The commercial lease agreement should clearly set out what repairs and maintenance the tenant is responsible for and what the landlord is responsible for. Often the tenant is responsible for general repairs and maintenance and the landlord is responsible for maintenance of safety type equipment such as fire extinguishers, safety exit signs etc.

 

(f)    Who Pays For The Lease?

Generally in NSW the tenant pays the landlord’s reasonable costs in relation to the preparation and negotiation of a commercial lease. The tenant is also responsible for their own legal costs.

With a Retail Lease both parties pay their own legal costs and a landlord cannot pass these costs on to the tenant.

The above are just a sample of some of the main issues to consider when entering into a commercial lease and it is important to obtain legal advice from Platinum Property Law before entering a commercial lease.

 

Platinum Property Law can protect you by:

• Negotiating on your behalf to make sure that any lease terms are fair and reasonable and are not weighted in favour of the other party
• Advising you whether the lease reflects the commercial terms you require
• Ensuring the Landlord has clear title to the property being leased
• Advising whether any mortgagee’s consent is required to the lease
• Checking whether the Retail Leases Act applies to the premises in question
• Checking whether all necessary approvals are in place to conduct the business in question.

 

Platinum Property Law can also advise you on associated matters such as whether there are any parking rights, or berthing rights if it is a waterfront property and of  any Owners Corporation responsibilities (if applicable).

We know the property business inside out. We are your one-stop property and lease shop.

If you have any questions on property lease agreements please call Property Platinum Law.

For More Information Call Us Now On : 02 9627 7400