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Lease out your commercial property

We prepare and negotiate commercial leases for landlords, so the outgoings, the make-good and the default remedies actually work.

A commercial property is worth what the lease says it is worth. The rent is the visible part. Whether you can recover outgoings, enforce make-good, or terminate when a tenant stops paying all depends on how the document is drafted. We act for landlords so the lease protects the income and the asset, not just the tenancy.

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Outgoings you can actually recover

The recoverable items are identified and apportioned clearly, so you are not quietly funding the shortfall for the whole term.

Make-good tight enough to enforce

The reinstatement obligation is specified in enough detail that an outgoing tenant cannot argue their way out of it.

A default procedure that holds

The notice and re-entry provisions are drafted and explained so enforcement does not turn into a claim against you.

What governs a commercial lease

Leases of retail shops are regulated by retail leasing legislation in each state. It imposes disclosure obligations on landlords and overrides some landlord-favourable provisions, whatever the lease says.

Commercial leases that are not retail shops sit outside that regime. They are governed largely by contract, which gives the parties more freedom to negotiate and puts more weight on the drafting.

Either way, the landlord’s position comes from the document. Recovering outgoings, requiring the premises to be reinstated, re-entering after a default: each is only as good as the clause that creates it. A lease is not paperwork that follows the deal. It is the deal.

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Does the retail leasing legislation apply to my property?

It applies to leases of retail shops, meaning premises used mainly to sell goods or services by retail. Each state has its own retail leasing legislation, and the tests for whether a lease is covered differ from state to state. Where it applies, the landlord has to give the tenant a disclosure statement before the lease is entered into. We confirm which regime applies before the documents are prepared.

What outgoings can I recover from my tenant?

Only what the lease expressly provides for. The usual recoverable items are council rates, water and sewerage, building insurance, strata levies and sometimes land tax. For retail leases the legislation limits what can be passed on and requires disclosure. We draft the outgoings clause so the recoverable amounts are certain and enforceable.

How do I make a make-good obligation stick?

By specifying it. A make-good requires the tenant to return the premises to an agreed condition, usually by removing fitout, repairing damage and repainting. Vague obligations are routinely disputed by outgoing tenants. We draft make-good with enough detail to enforce, and advise on securing it with a bank guarantee.

What can I do if my tenant stops paying rent?

Your remedies come from the lease and depend on the type of default. For arrears the lease will usually let you issue a notice to remedy and then terminate and re-enter if it continues. The procedure has to be followed exactly, because an invalid re-entry exposes you to a claim by the tenant. We advise on the correct steps before you take them.

The lease you sign today governs your rights for the whole tenancy

A lease that does not deal clearly with outgoings, make-good and default will be tested at the worst possible moment. Getting those clauses right at the start costs a fraction of enforcing an ambiguous one.

A lease that protects the tenant more than the landlord is a liability wearing the costume of an asset

You have a property and you want a tenant in it, paying rent. But the lease has to deal with outgoings recovery, rent reviews, make-good and default in terms that hold up when they are tested.

A lease drafted loosely, or borrowed from somewhere, leaves you without the remedies you assumed you had. You usually discover that at the worst moment, when the tenant has already stopped paying.

We will advise on whether the retail leasing regime applies and what it requires of you.
We will prepare the lease and any required disclosure statement.
We will negotiate with the tenant's solicitor and advise on the terms you should not concede.
We will manage execution and registration where the lease term requires it.

You want the income without losing control of the asset

The property is ready and there is a tenant who wants it. The rent is right and everyone would like to get on with it.

But the terms have to be correct before anyone signs, because afterwards you are negotiating from a much weaker position. A loose outgoings clause can cost you every year of the term. A vague make-good can leave you paying to strip a fitout that isn’t yours. A defective default procedure can make your re-entry unlawful. You want the document right so the tenancy runs on your terms.

What's included in your commercial lease service for landlords

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Advice on whether the retail leasing regime applies to your premises.
Lessor's disclosure statement preparation for retail leases.
Lease drafting covering rent, outgoings, make-good and default.
Negotiation with the tenant's solicitor.
Execution and registration management.

What goes wrong when the lease is treated as a formality

Outgoings are the slow loss. A clause that does not clearly identify what is recoverable means you fund the shortfall yourself, every year, for the whole term. Nobody notices, because it never arrives as a single bill.

Make-good is the loss at the end. A vague obligation to return the premises in good condition is routinely disputed by an outgoing tenant. You are left paying to strip a fitout you never wanted.

Default is the loss that hurts most. If the notice provisions are not followed exactly, a re-entry can be unlawful. You go from a tenant who owes you rent to a tenant who has a claim against you.

In a retail lease there is one more. Fail to give the required disclosure statement and the tenant may be able to terminate or seek compensation, however the rest of the lease reads.

How we make the lease hold up for the whole term

We work out first whether the retail leasing legislation applies, because that changes what you can and cannot do. If it does, we prepare the disclosure statement and serve it properly.

We draft the lease around the clauses that get tested. Outgoings identified and apportioned clearly. Rent review mechanisms that work without argument. Make-good specified enough to enforce. Assignment conditions that keep you in control of who occupies.

We run the negotiation with the tenant’s solicitor and tell you which points matter and which are safe to concede. Then we manage execution and registration, so the tenancy is documented properly from day one.

Three steps to a lease that works in your favour

Disclosure met, lease drafted, tenancy documented on your terms.

Advise and draft

We confirm which regime applies, prepare any required disclosure statement, and draft the lease to protect your recovery rights.

Negotiate the terms

We deal with the tenant's solicitor and tell you which terms are worth holding and which are safe to concede.

Execute and register

We manage execution and registration where the term requires it, and confirm the tenancy is properly documented.

Landlord-side commercial leasing, from disclosure to registration

Most landlords come to us after a lease has already disappointed them. The clause they relied on turns out not to say what they thought. By then the tenant has no reason to agree to anything. Getting the drafting right before the tenant moves in is far cheaper than arguing later.

We act for landlords on retail and non-retail commercial premises. The work is in the recovery mechanisms. Which outgoings are genuinely recoverable and how they are apportioned. Make-good specified tightly enough to enforce. A default procedure that makes re-entry lawful rather than a trespass. We are an ISO 9001 accredited practice. How your matter is run, who does the work and what you get told are all defined and externally audited.

Our great lawyer guarantee

Six principles we hold to, whatever you bring us and however long it takes.

Take the time

We listen carefully to understand what you want to achieve, then step you through the advice and the documents.

Share our knowledge

We pass on as much as we can, so you can make your own informed decisions.

Stick to our knitting

We only do what we are good at, so you never pay for our learning.

Work as one team

Someone is always available to answer your question or point you the right way.

Fair pricing

A fixed or capped quote for advice and documents, so you do not carry the price risk.

It is your show

We are in it for a front row seat to witness your success, not for our egos.

Ready to get your lease drafted properly

The lease is the asset. Everything you can recover, enforce or terminate for the next several years is decided by one document. It takes far less time to get right than to argue about. Tell us about the property and the proposed tenant and we will prepare it.

Speak to a lawyer 1300 654 590