A lease is an important legal document setting out the rights and obligations between the landlord and the tenant. Some conditions and terms to consider including in your lease are:-
- How is the rent to be calculated and how will it be reviewed and how often will it be paid;
- What outgoings (eg Council rates, Insurance, Strata Levies etc) are payable by the tenant and which are payable by the Landlord;
- Whether the tenant can renew the lease or not;
- How can the tenant utilise the premises;
- Conditions relating to the extent that any common property is shared;
- Whether there any set trading hours for the tenant.
- Who is responsible for maintaining fire safety equipment.
If a lease is intended to operate for a period of 3 years or more (including any potential tenure period that the tenant may be entitled to pursuant to an option to renew), then in addition to entering into a formal lease it will also be necessary to register the same with the LPI NSW.
In addition, in relation to retail leases, there are important obligations imposed by the Retail Leases Act 1994, for example, it is necessary to issue a lessor's disclosure statement annually and there are restrictions as to the types of terms that can be included in such a lease. It is against the law to require the tenant of a Retail Lease to pay for the costs of the preparation of the lease, however they can be required to pay the costs of amending a lease that has been issued.
There are also numerous situations which may arise during the course or when a lease is being terminated that may require legal advice, including situations involving rent default or where a tenant seeks to assign their lease.
Please contact us to assist if you require assistance with a retail leasing query.