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Commercial Leasing and Property

Check out our plain English legal articles on commercial property leasing in Australia. We cover topics like setting up your commercial lease, handling breaches, subleasing, termination and more.

Dealing with Commercial Tenant Requests for Rent Reduction or Abatement

closed shopThe very knowledgeable Wendy Thomson has shared this excellent article on how Commercial Property managers are dealing with Tenant requests for rent reduction or abatement. If you’re a landlord who manages your own commercial or retail property you can use Wendy’s advice if you’re dealing with the same situation.

How to set up a Shared Office Space Agreement Template

shared office spaceIf you’re considering sharing a workspace – such as a room, office or clinic – you may think you need to set up a full retail or commercial lease. However you don’t have to lock yourself and your tenant into a rigid lease agreement to share a workspace. Instead, you can set up a licence to occupy with a Shared Office Space or Licence Agreement.

How to set up Rent Review Provisions in a Property Lease

lease or licence Property lease must contain clauses relating to rent review whether the increase applies to the term of the lease or subsequent terms. We look at a few ways to set up your rent review provisions.

Burning Question: Commercial or Retail? Which Lease do you need?

commercial or retail buildingUnder Australian Law it can be tricky trying to work out whether your commercial property needs a commercial or retail lease. It’s important to choose the right option for your tenant so you comply with the law. This article helps you work out whether a property you wish to rent out falls under a retail or commercial lease.

Stating the Parties to a Contract correctly

It might seem very basic, but it is vital to get the names of the entities or “parties” correct when drafting a legal document. Stating the parties formally and accurately gives you certainty that there can be NO question about the parties’ intentions later, especially if the particulars are changed or forgotten. We look at the different types of “parties” and the correct way to record the information.

Leasing Commercial or Retail Property? Do you need a Guarantor?

lease guarantorWhen setting up a lease it’s important safeguard your investment against tenant default. One way is to nominate a Guarantor for the lease. Guarantors are the people (or other legal entities) who agree to be responsible for the debts of the tenant, should the tenant default.

Info graphic – Expenses you can claim for your Rental Property

If you own a Commercial rental Property you can claim the following list of expenses as a tax deduction as long as the expenses were incurred during the period your property was rented or available for rent.

When can you break a Commercial Lease Agreement?

fruit shop NB2In this economic climate, it is not a far stretch to imagine commercial businesses in the unfortunate position of having to end a lease early. In this article, we consider the ways a tenant may be able to exit a Lease in a commercial setting.

Can I sublease a Commercial or Retail Premises?

Assign or Sublet?Yes, you can sublease commercial or retail premises, provided that the terms of your Lease do not prevent you from doing so. If you wish to sublet part of your space then you need to follow the correct procedure so your sublease is approved by the Landlord.

What’s the difference between a Lease and Licence?

lease or licenceLeases and Licences are types of agreements that can be used to allow a person to occupy land or a building owned by another in return for rent or a licence fee. If you are thinking of implementing either a Lease or a License, you should be aware of the differences of each of these documents.

How Would Assets Perform if Negative Gearing Was Removed?

Many property investors rely on negative gearing but what would happen if it just wasn’t available anymore. John Edwards takes a good luck at what might happen.

Is your Commercial Lease Secure?

Is your tenancy secure?If you are a commercial or retail tenant, you may think that having a signed lease in place with the property owner is all that is necessary to give you security of tenure. However, there are other steps that you need to take to ensure that your leasehold interest in the land is secure.

How to take a Security Deposit (bond) for your Commercial Premises

A Security Deposit or Bond is a sum of money paid by the tenant to the Landlord to secure the obligations they have agreed to under the lease. We look at the procedures of taking and drawing on a security bond.

Why it’s important to register your commercial lease

In certain states of Australia, it is a legal requirement for a commercial lease to be registered if the term exceeds 3 years (including the option periods). This article includes links to state specific information for registering your lease.

Rectifying a mistake in the terms of a contract

Yes, sometimes factors exist which will impact on an otherwise valid contract and if the mistake concerns a fundamental matter, the mistaken party can apply to the courts for relief. We look at different types of mistakes and how a mistake can be rectified.


Purchasing your business premises with your SMSF

A popular strategy among business owners is to purchase (or transfer) their business premises into a Self Managed Superannuation Fund (SMSF). The business property is then leased to the business entity (or individual) as the tenant. This is a great way to leverage your assets as long as all dealings between the SMSF and related parties are kept at arms length and on Commercial terms, that is, you have to get the paperwork in order.

Ten ways to negotiate a BETTER commercial lease

When negotiating a Commercial Lease it gives you greater power to understand the key provisions that will affect your bottom line. It’s not just the rent, there are a number of different clauses in the lease that contribute to the overall costs. Be aware that there are provisions that provide a little wiggle room and these often provide an opening to reducing the costs when negotiating with the Landlord.

Landlords Guide: What to do if your tenant wants to assign or sublease a Commercial property

There are a variety of circumstances that might lead your tenant to ask for an assignment of the lease or to sublet the leased premises. This article outlines the steps a Landlord of a commercial porperty should take if your tenant asks this question.

Is a verbal agreement legally binding?

Verbal agreements can be legally binding and in fact many business and personal transactions are conducted purely on a handshake. But if things go wrong, it can be very difficult to sort the matter out or to even prove the agreement existed.

8 Key considerations for Commercial Leasing tenants

Signing a commercial lease can have serious legal and financial implications for your business. Here are six key elements you should consider before signing yours.

NEW – State Based Real Estate Property Kit

It’s taken several years to get all the documents together but we’ve finally done it. We’ve just launched our Property Investors Kit with a view to providing all of the documents you would need if you were prone to property investment.

How to do bankruptcy and company searches for commercial transactions

In business, it is prudent to conduct targeted enquiries such as bankruptcy and company searches on the parties you are considering dealing with so you can make sure you are not exposing yourself to unnecessary risk.

Permitted Use and Exclusivity clauses in Commercial Leases

When you’re negotiating a retail lease, striking the right balance between your needs and that of your tenant can be challenging. A well worded permitted use clause balances your desire to maintain effective control over the premises and how they’ll be used against the tenant’s need for the opportunity to grow and expand their business. Here are some of the facts to consider when negotiating yours.

Permitted use – commercial and retail leases

For a landlord, a well worded permitted use definition allows you to maintain effective control over the premises and the way it will be used. You can make the permitted use as specific or as open as you wish.

How to terminate a commercial lease for non-payment of rent or other breach

It is a situation landlords hope they will never experience. Their tenant has stopped paying rent and they need to take action to mitigate the damage to their bottom line. We look at what the Landlord needs to do and more importantly how they should do it.

When to use a Licence to occupy instead of a Lease?

Are you thinking of renting out a room, clinic or office? You may not need a full Retail or Commercial Lease to cover your arrangement because a Shared Office Space or Licence Agreement may suit your needs.

Three Reasons why a Verbal Lease can turn into a Booby Prize

It may be seem like a generous act of goodwill to allow your tenant to move in before finalising your lease – but this decision can have big consequences for you down the track. We examine the three main reasons why you should resist the temptation to let your tenant move in before they have signed on the dotted line.

How to find the “Title Reference” for your Queensland Lease

Commercial lease title referenceWhen you’re completing a lease for a Queensland property where you intend to register the lease then you will need to provide a “Title Reference” number. We show you how to find it.

6 bottom line issues you must consider before signing a Commercial Property Lease

6 key issues commercial leaseAre you signing up or thinking of signing a commercial lease?  As a tenant there are a few key provisions to look out for because they have the potential to make or break your tenancy. This article explains what they are and what you should look for.

Terminating Commercial Leases for Non-payment of Rent – Validity of Law Society Lease Questioned

validity or law sociaty leaseA recent decision of the New South Wales Civil and Administrative Tribunal (Charlie Bridge Street Pty Limited v Petrazzuolo: Petrazzuolo v Charlie Bridge Street Pty Limited [2019] NSW CATCD1) has raised some interesting issues about the right of a landlord to terminate a lease for non-payment of rent without giving notice to the tenant. The decision also found that a provision of the printed Law Society of NSW lease does not comply with section 129 of the Conveyancing Act and is therefore inoperable.

How to provide an Option to a Sub Tenant

SubleaseSubleasing is quite common but how should you provide an option for renewal in your sublease? We look at the issues involved and the steps you should take.

Landlord’s rights and obligations when a tenant seeks to sublet or assign a Retail Lease

Retail Lease Assign or SubleaseRetail leasing is quite regulated and if your tenant asks to assign the lease or sublease the premises there are particular actions you should take. We’ve put together a handy table that breaks down the Landlords obligation for each Australian state.

Is AirBnB considered a sub-lease?

Is airbnb a sublease?As a landlord, you invest time in screening suitable tenants, decide who is best placed to look after your investment property and subsequently enter into a lease agreement. However, with the rise of the sharing economy, you may be unaware of how your property is actually being used. If your tenants sub-let the property without your knowledge or permission, do you have any rights to reclaim possession?

The difference between assigning and subletting

Assign or Sublet?Assigning and subletting a lease are two very different procedures. We look at the differences.
“Assigning” and “subletting” may sound like interchangeable terms. But as we shall see, they are vastly different.

If you have space in your leased commercial premises (either all or part) that you are thinking of assigning or subletting to another, you should make yourself familiar with the legal effects, the pros and the cons of both assigning and subletting.

Pros and Cons of Subleasing a Commercial or Retail Premises

Pros cons subleasingSubleasing your commercial or retail premises can be a smart move.This article breaks down the pros and cons of subleasing a commercial or retail premises from both the Sublessor and Sublessee’s point of view.

Short Term Retail Leasing

Short Term leasingRetail lease transactions are heavily regulated in Australia and in most states and territories, retail tenants have the right to a minimum 5 year lease term. There are circumstances however, where your might want to set the minimum term at less than 5 years. This article explains how this might be done.

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