A lease is a legally binding contract that gives you certain rights to a property for a set term.
You should never sign a lease without understanding all of its terms and conditions. If you don’t understand what you are agreeing to, you could experience serious financial and legal problems.
We recommend you ask your solicitor or SLSQ to explain each clause of the lease to you. Your solicitor or SLSQ can also help you to negotiate lease terms to suit your needs.
This guide will help you to understand what it means to lease business premises, and the best way to go about it.
The Queensland government’s Business Queensland website serves as a valuable resource for individuals seeking information on leasing premises. The website offers comprehensive guidance on various aspects of leasing, including different types of leases available in Queensland, important considerations when leasing or releasing business space, and practical advice for navigating the leasing process.
Queensland Government – Different types of leases
Queensland government’s Business Queensland website
DO
| Communicate early: | Initiate early discussions with the landlord to express your interest in renewing the lease and negotiate new terms if necessary. Open communication can help facilitate a mutually beneficial agreement. |
| Negotiate favourable terms: | Take the opportunity to negotiate new terms that align with your business needs. This may include rent adjustments, lease duration, renewal options, maintenance responsibilities, and any desired lease improvements |
| Seek legal advice: | Consider consulting with a lawyer experienced in commercial leasing to review the lease agreement and ensure your rights and interests are protected throughout the renewal process. |
| Plan for contingencies: | Anticipate potential scenarios such as changes in business circumstances or future growth and ensure the lease terms accommodate these possibilities |
DON’T
| Delay the renewal process: | Start the renewal process well in advance to allow ample time for negotiations, documentation, and any required approvals. Delaying the process may result in unnecessary stress or complications. |
| Overlook lease terms and conditions: | Carefully review and understand all terms and conditions proposed in the lease renewal agreement. Be mindful of any potential unfavourable clauses that could impact your business in the long run. |
| Neglect maintenance and repair obligations: | Clarify and document the responsibilities for maintenance and repairs during the lease renewal. Ensure that both parties have a clear understanding of who is responsible for what, including any costs involved. |
| Forget to document everything: | Maintain accurate records of all communications, negotiations, and agreements related to the lease renewal. This documentation can serve as evidence in case of any disputes or misunderstandings |
| Rely solely on verbal agreements: | Ensure that all agreements and modifications to the lease renewal are properly documented and signed by both parties. Verbal agreements can be difficult to enforce and may lead to misunderstandings later on. |
| Club Tip Add dates within your 12-month calendar for when you should review your lease(s). |
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