1. Retail or commercial lease?
- Each state and territory has its own retail leases legislation (for example, the Retail Shop Leases Act 1994 in Queensland, the Retail Leases Act 1994 in New South Wales and the Retail Leases Act 2003 in Victoria).
- Whether that legislation applies depends on the premises, the business carried on and the jurisdiction. It can affect disclosure, rent reviews and what the lease is allowed to say.
- If you are unsure which applies, confirm it before relying on any assumption about your rights.
2. Rent and how it changes
- Confirm the starting rent, whether it includes GST, and when it is payable.
- Check the review method: fixed percentage, CPI, market review or a combination — and how often reviews occur.
- Look for any incentives (rent-free periods, fit-out contributions) and whether they must be repaid if the lease ends early.
3. Outgoings
- Identify which outgoings you must pay (for example rates, insurance, cleaning, maintenance of common areas) and how your share is calculated.
- Ask for an estimate of outgoings for the coming year so you can understand the total cost of occupancy.
4. Term and options to renew
- Note the start and end dates and any option periods.
- Options usually must be exercised within a strict window and in a set manner. Diarise the dates — missing them can lose the right to renew.
5. Security
- Check the amount of any bond or bank guarantee and when it can be called on or returned.
- Personal guarantees from directors are common. Understand what you would personally be liable for.
6. Use, fit-out and repairs
- Make sure the permitted use clause covers everything your business does now and may do in future.
- Confirm who is responsible for repairs, structural issues and compliance works, and whether landlord consent is needed for your fit-out.
7. Assignment, subletting and selling your business
- If you might sell the business, check the conditions for assigning the lease and what the landlord can require.
- Check whether you remain liable after an assignment.
8. Make good and ending the lease
- Make good clauses can require you to return the premises to a specified condition at your cost. Record the condition of the premises at the start (photos help).
- Check the default and termination provisions, and any early termination rights.
Need help with this?
Send us the draft lease or heads of agreement, the premises address and any key dates. We’ll discuss the scope of review and engagement terms before starting.
General information only, not legal advice. Laws differ between states and territories and depend on your circumstances.