Commercial lease is a document in which a Lessee (or Tenant) is given a right to exclusive possession of land in return for rent and other promises given to the Lessor (or landlord). The terms of the lease govern the relationship and the rights of the landlord and the tenant. Where the premises are going to be used as a retail premises, the Retail Leases Act 2003 (VIC) will override and supplement the rights and obligations of the parties.A poorly drawn commercial lease may leave you no alternative other than to make a cumbersome common law “demand” for return of your premises and/or circumvent your rights to claim future losses after you have retaken possession. A properly drawn commercial lease will include:
- The names of the parties
- Identity of the property
- The term of the lease and its commencement date
- Options for renewal
- The rental
- Rent review mechanisms
- Security bonds
- Obligations in relation to outgoings
- Duties of the tenant
- Duties of the landlord
- Transfer of Lease provisions
- Default provisions
- Fire and other catastrophes
- Director’s guarantees
Please contact us to get professional advice if you have any questions regarding commercial leases. At P&B Law we offer expert advice on all aspects of leasing including Disputes between landlords and tenants.
At P&B Law we create leases which are designed to best protect you in the complex legal world of property leasing. If the Retail Lease Act 2003 applies, than you must give the tenant before signing the lease a Disclosure Statement and a Small Business Commissioner Information Brochure.
The location of your business is a very important factor in its success. As a tenant, it is important to ensure that the duration of the lease is sufficient to meet your long term business objectives. If you are contemplating leasing a premises, we can guide you through the process.