Generally, commercial leases are more complicated than residential leases, because they are usually customised to a specific situation. As a result, if you are a tenant who is about to sign a lease for commercial premises, it is important to seek legal advice to ensure its terms match your needs.
In the same way, if you are a landlord looking to lease your premises, you should ensure that any lease drafted on your behalf supports your commercial objectives.
How can we help you with your commercial lease?
The process of preparing a commercial lease usually involves a fair amount of negotiation. For that reason, it is important to retain a lawyer who:
- understands your situation
- can represent your interests effectively
- is able to navigate you through the process
- can help you avoid any pitfalls.
At Monardo Solicitors, we are experienced in advising landlords, tenants and managing agents on all legal issues associated with commercial leases.
We can undertake:
- due diligence for prospective tenants or guarantors.
We can review or draft:
- letters of offer
- agreements to lease
- commercial leases
- disclosure statements
- fit-out/incentive agreements
- exercise of option letters (to ensure that any right to renew the lease is not lost).
We can also advise you on:
- your rights and obligations (whether you are the landlord or tenant)
- renewals and extensions
- rent increases or adjustments, including market rent reviews
- assignments or transfers
- licensing arrangements
Are you a tenant?
As a tenant, it is important that you get legal advice when you are considering signing a commercial lease, because you need to ensure you are properly protected and that any informal agreement reached in discussions with the landlord is recorded in the lease itself.
At Monardo Solicitors, we can review and negotiate your commercial lease in order to ensure that you understand the key terms, as well as identify any terms that may later become detrimental to your business.
Key issues you need to consider are:
- What is the initial rent?
- How are rental increases to be calculated?
- What method is used to calculate rental increases?
- What is the length of the lease?
- What other expenses are you required to pay under the lease?
- Does the length of the lease suit you and your business?
- What are the terms on which improvements to the property can be made?
- Does the property need to be returned to its original condition at the end of the lease?
- What are your rights to renew the lease?
- Can you transfer or assign the lease?
- Is it possible to sublet the premises?
- How can you resolve disputes?
- Does the lease include all the areas you expect to use, including bathrooms, parking areas and common areas?
Are you a landlord?
As a landlord, it is important that any lease is skilfully drafted, to ensure that your investment is properly protected and you have rights of recourse against your tenant if they don’t abide by the terms of the lease.
Key issues you need to consider are:
- Does the lease allow you to review the rent at appropriate times?
- Does the lease allow you the appropriate discretion if the tenant wants to assign the lease?
- Does the lease provide you with sufficient rights at the end of the tenancy if the tenant fails to remove their fit-out and make good the premises?
How does Monardo Solicitors approach commercial leases?
At Monardo Solicitors, we understand that it is important to take the time to understand both your business and your business objectives before advising you on the terms of any commercial lease you are planning to sign. We are also very good at focusing on the details so you can avoid any potential pitfalls.
Are you a landlord? Are you a tenant? Are you a managing agent? Are you thinking about leasing a commercial property? Would you like the assistance of a lawyer with experience in commercial leases? Call 1300 529 029.