What are Lease Outgoings and who Pays them?
A business leasing premises should be aware of the payments they need to make to the lessor. Not only does a lessee need to pay rent but they may be required to make additional payments termed as outgoings. Payment of outgoings is quite common in leases. It is important to note what the term “outgoings” covers and how a lessee can determine the amount to pay on top of their rent....
Lease Make Good Clauses – What Does do they Mean?
It is not enough to simply vacate the lease premises if a clause imposes an obligation to make good the premises. It is important for lessees to identify what making good the premises means and what actions they need to undertake if they identify such a clause is inserted in their lease.
What is a Make Good Clause?
At the end of the lease, the lessee will have...
Retail & Commercial Lease Insurances – What Do You Need To Have And When?
Finding a place to move your business can be a daunting process. The process may involve reviewing the draft lease documents, that contain many pages of clauses. However, one of the most important obligations is the requirement for lessees to take out insurances related to the lease. Not only do the insurances greatly protect...
When should a Lessee Renew their Lease Option?
Leases often come with a possibility to extend the lease for a certain period of time. This is considered a lease option period and if the lessee wants to pursue extending their lease, there will be obligations and deadlines the lessee must achieve to be granted the lease extension.
Renewal Requirements
Note that a renewal...
Leasing Premises for your Business? Do you Need to Pay the Lessor’s Mortgagee Consent Fees?
There are many costs to leasing a premises, not just rent and outgoings. One of these costs may include a lessor’s mortgagee consent fee. Not only is it important for lessees to be able to identify what this cost is, but it is important that both lessors and lessees be aware it is lawful to make the lessee pay the consent fee....
Terminating a Lease Early – How and when can you exit out of a lease before the end date
A substantial benefit to retail and commercial leases is that they provide a fixed term meaning a lessee is given a set amount of time to occupy the premises. However, either party to a lease may be able to terminate it earlier. It is important to understand when either party may terminate a retail or commercial lease and whether there will be any penalties for terminating....
Rights of a lessee tenant when negotiating a retail lease
Leasing a premises for your business can be an exciting process. However, as leases are generally drafted by lessors, the clauses are predominantly in the lessor’s favour. Nevertheless, the Retail Shop Leases Act 1994 (Qld) (“the Act”) provides lessees protection as long as the lease meets the definition of a retail shop lease. It is important that lessees are aware of their...
Insurances required under a commercial and retail lease
Finding a place to move your business can be a daunting process. The process may involve reviewing the draft lease documents, that contain many pages of clauses. However, one of the most important obligations is the requirement for lessees to take out insurances related to the lease. Not only do the insurances greatly protect the lessee while using the premises but they provide a...
Lease Incentives – What are they and the Hidden Dangers
Lessors to commercial and retail leases may offer a lessee short term advantages to entice a lessee to enter into the lease. These are known as lease incentives and while they do intend to provide lessees with an easier transition into leasing a premises, they also can have hidden traps that lessees should be aware of. Lessee should understand the obligations imposed on them prior to...