In the case of a Retail Lease
- Hours of access to the shop outside trading hours.
- Date the premises will be available for the tenant to occupy.
- The requirements of the lessor concerning the quality and standards of the fittings.
- Details of the outgoings to be paid by the lessee and an annual estimate for each amount. With net leases usually the landlord is required to give you a budget of the outgoings before each lease year.
Some other guidelines
- A deposit is usually asked for to be paid upon the agreement to lease becoming unconditional. This is equivalent to two months rental plus gst which accounts for the first two months rental and is usually paid into the Agent's trust account, held there for 10 working days and then released to the landlord. *note that some lessors may ask for a bank guarantee.
- As a tenant, you have responsibilities to the landlord. These include paying your rent when it is due and ensuring the property is kept in a reasonable state of repair.
- If you want to sell your business before the end of the lease period, you must act within the provisions of your lease. In most cases, you must obtain the permission of the lessor to transfer the lease to the prospective proprietor. The lessor prior to giving consent will require information regarding the suitability of the prospective proprietor/buyer such as business experience and financial position. Check your lease.
- If the building is sold almost invariably your lease will transfer to the new landlord.
- The lease is an important document. Keep it in a safe place. Make a note of the important dates in the lease, especially when you have to excercise options.
- Make sure you receive and store your Tax Invoice from the landlord or their agent.
- The landlord may be entitled to possession if the rent is unpaid or for other serious breaches.
Working with your Agent
Developing a strong working relationship with your agent is helpful for your both. This is very important in leasing, where the property is so much a part of your business. The agent is a professional who wants to achieve the best possible result for you and the landlord. Work with your agent.
What happens if a dispute arises?
Having a written lease, and ensuring you receive advice from a lawyer before you sign it, will ensure that you understand your rights and obligations from the time your lease begins. Business leases contain many obligations, provisions and considerations. If a problem arises, discuss the matter with your landlord or Property Manager and try to resolve the issue as soon as possible. If you can reach an agreement together, it is a good idea to confirm the solution in writing to the agent. Your lease will have dispute provisions.