If you're a business owner, then you should know that your lease agreement is one of the most important aspects of your business. It's not just about where you're located or the type of space you have; it's also about how long you've been there and what happens if things don't go according to plan.
The best way to ensure that your lease is going to work in your favour is by knowing what to look out for when reviewing it.
Here are four mistakes to avoid with commercial leases in Australia:
1) Not Checking If The Premises Are Fit For the Purpose
Before signing a lease, you should visit the premises and check that they are fit for purpose. This includes checking that there is sufficient parking, access and egress for vehicles and pedestrians, access for deliveries and removal of rubbish, adequate natural light in all rooms, and other issues such as noise levels from neighbouring businesses or activities on public roads. If you're in doubt about whether the premises are fit for purpose, ask your lawyer to do an inspection report before signing the lease agreement.
2) Not Getting Professional Advice
It's crucial to get advice from a qualified lawyer before signing any commercial leases — even if you're going through a real estate agent who has experience in commercial leasing or if your landlord's lawyer drafted the lease agreement. A qualified lawyer can advise on the risks involved with each clause in the lease agreement and suggest ways to avoid those risks or limit their impact on your business operation.
3) Neglecting Maintenance Responsibilities
Maintenance responsibilities should be outlined in your lease but if they aren't, make sure that they're covered in any verbal agreements with your landlord. You don't want to get caught out without knowing who is responsible for basic things like cleaning common areas or repairing broken fixtures and fittings around the building.
4) Forgetting About Renewal Clauses
If you're signing a new commercial lease agreement and want to ensure your business stays in its current location for as long as possible, look out for renewal clauses in the contract. These clauses typically allow either party to terminate the lease early if certain conditions are met (for example, if one party wants to move their business elsewhere). A lawyer who specialises in commercial leases can help you review these clauses, discuss their implications and help you decide whether or not to include them in your contract.
Contact a lawyer today to get help with your commercial leases.