Commercial leases often have more clauses than you can poke a stick at!
Before you sign your new lease, make sure you understand some of the key clauses in your lease document. They can have a big impact on your business operation.
- Tenant Obligations: This clause differs in each lease. Standard obligations usually include:
- Keeping the premises clean and in good condition.
- Maintenance and repairs for any damage the tenant caused (except anything structural which is the landlord’s responsibility)
- Obtaining any licenses needed (eg. liquor licenses for bars)
- Making good the premises upon exit.
- Demolitions: The landlord has the right to terminate the lease early if they propose to demolish or remodel the premises.
- Assignment and/or Subletting: This clause sets out the circumstances in which the tenant can assign the lease or sublet to another party. The tenant will usually require the landlord’s reasonable consent.
- Default: The landlord can terminate the lease where the tenant is considered to have breached an essential term of the lease. While events of default vary, typical examples include:
- Failure to pay rent
- Using the premises for other purposes, or
- Bankruptcy/insolvency.
For clarification and support consult Richard Wise Solicitor before signing any Commercial Lease. Call today for an appointment – 02 6372 3388.