If you own or manage commercial property, you know that your commercial lease agreement is more than just paperwork—it’s the foundation of your investment. At our firm, we regularly see how a well-drafted lease can make all the difference for landlords. Here’s why getting your lease right is essential for your success.
A good lease spells out exactly how your property can be used. This means you control what kind of business operates there, how the space can be changed or fitted out, and who is responsible for repairs and maintenance. Clear terms help prevent your property from being damaged or used in ways that could lower its value.
Your lease should clearly state how much rent is due, when it’s due, and how it can be increased over time. It should also cover who pays for outgoings like rates, taxes, and insurance. Including security measures—like bank guarantees or bonds—gives you extra protection if the tenant falls behind on payments or causes damage.
Disputes often arise from unclear or missing terms. A well-drafted lease sets out everyone’s rights and responsibilities, making it easier to resolve issues before they escalate. Including a dispute resolution process, such as mediation, can save you time and money if disagreements do occur.
Especially for retail premises, the law in NSW requires landlords to provide certain disclosures and follow specific rules. Failing to comply can lead to penalties or even make parts of your lease unenforceable. A properly drafted lease ensures you meet all your legal obligations.
A secure, long-term lease with a reliable tenant makes your property more attractive to buyers and lenders. Clear terms about assignments and subletting also make it easier to sell or refinance your property in the future.
A well-drafted commercial lease is one of the best investments you can make as a landlord. It protects your property, secures your income, minimises disputes, and helps you comply with the law. If you’re considering leasing your commercial property, make sure your lease is drafted with care and attention to detail.
For more information or to discuss your leasing needs, contact our team today.
