Commercial Lease: What You Should Know Before Signing
Leasing a commercial property is an exciting time to facilitate the growth and expansion of your business. Whether you’re a business owner looking to lease a space or a landlord considering renting out your property, you must clearly understand commercial leases to ensure compliance.
In this blog, we’ll delve into the intricacies of commercial leases and how our expert team at ADVIILAW can help you negotiate the terms of your lease agreement to guarantee you the best possible outcome for your business.
What is a commercial lease?
A commercial lease is what’s contractually agreed upon between a landlord and a tenant for property rental for business purposes. Unlike residential leases, commercial leases are subject to fewer consumer protection laws, offering increased flexibility and imposing greater responsibilities on both parties. These leases can cover various properties, from office spaces to retail stores, industrial warehouses and more.
What are a commercial lease’s key components?
Many businesses can fall into common leasing errors, like not conducting their due diligence on the property, failing to review their lease terms carefully or not seeking legal advice. Before signing a commercial lease, you should conduct thorough property inspections and seek legal counsel from our team to ensure your interests are protected, particularly when there are unique provisions or clauses to consider.
Our commercial lease lawyers in Brisbane will review the following aspects of your commercial lease:
- Rent terms — The lease should specify the rent amount, due date, frequency of payments and any rent increases over the lease term. Landlords may also require security deposits and advance rent payments.
- Lease duration — Commercial leases can vary in length, whether one to ten years or more. Longer leases provide stability for landlords and tenants, while shorter ones offer flexibility, depending on your business goals.
- Intended property use — The lease should clearly define the permitted uses of the rented space to ensure the intended business activities comply with local zoning laws.
- Maintenance and repairs — What is a commercial lease without mention of maintenance and repairs? It should clearly outline which party is responsible for maintaining and repairing different aspects of the property, such as utilities and structural repairs.
- Improvements and alterations — If the tenant plans to make any structural changes or improvements to the property, the lease should specify the approval process and whether these improvements become the landlord’s property at the lease’s end.
- Insurance and liability — Commercial leases often require tenants to maintain insurance coverage, such as liability insurance, to protect them from potential accidents or damages on the property.
- Lease termination and renewal — The lease should specify the notice period required for both parties to terminate or renew the agreement.
Understanding these terms is essential, so you can plan for your business’s future.
Dispute resolution lawyers for commercial leases
While navigating a property dispute is no easy feat, consulting with the commercial litigation lawyers at ADVIILAW ensures prompt action, sound legal advice and the resolution of lease conflicts.
With an in-depth understanding of the complexities of the Australian property market, our commercial litigation lawyers can help protect your interests, mitigate conflicts and prevent them from escalating.
Our litigation lawyers can assist with the following:
- Dispute prevention — We can provide guidance on lease terms and conditions to avoid common issues. Our litigation lawyers can also include clauses that address potential sources of conflict, such as rent increases, maintenance responsibilities, subleasing and default provisions.
- Mediation and negotiation — Our commercial lawyers act as intermediaries between the parties involved when disputes arise. They will negotiate on your behalf to reach mutually agreeable solutions, reducing the need for potential litigation. Having dealt with hundreds of complicated legal cases, our team has the technical expertise and knowledge to summarise complex information into digestible, bite-size chunks, so you feel supported throughout the proceedings.
- Conflict resolution — If a dispute arises, our lawyers are experienced in resolving conflicts within the Australian legal framework, ensuring that all actions comply with Australian commercial property law.
- Litigation — If negotiations and mediation fail to resolve the dispute, our solicitors can represent you in a court of law or in front of a Tribunal.
ADVIILAW — helping you navigate commercial lease property disputes
If your business is moving into a new space, our commercial law specialists will run you through the fine print of your lease agreement and negotiate the terms to help you get the best possible outcome for your business. Whether buying or selling a commercial property or experiencing a dispute with a property owner or another party, our litigation and dispute lawyers are here to help.
Our lawyers have been practising property law and commercial dispute resolution in Queensland for years, and we have the expertise you need to secure a lease agreement or diffuse a potential conflict.
When you choose ADVIILAW, you can trust that we’ll ensure your commercial lease protects the interests of your business, so any dispute will be resolved with sound legal advice and immediate action. If you have any questions, don’t hesitate to contact our team, who are happy to assist you.