Commercial Lease Lawyers Brisbane

If you are starting a business or thinking of relocating your existing business it is likely you will need premises.

A fundamental question for any person opening a business that requires a premises for the business is whether to lease business premises. The choice a business owner faces is whether to opt for the security and the significant obligations of a lease or the flexibility and lesser commitments of a license to use premises for the business.

The risk of a lease is that if for some reason, such as business failure or the commercial needs of the business it becomes necessary to move out of the premises or whether a lease of new premises is required, the tenant is still bound by the obligations of the lease including the obligation to pay rent for the remaining term of the lease. If the tenant walks away from these obligations without the consent of the landlord he/she may be sued for damages being the future unpaid rent for the future term of the lease. To avoid being sued for damages the tenant will have to continue to keep paying rent even after leaving the premises until either the landlord or the tenant finds a new tenant satisfactory to the landlord.

The benefit of the lease, however, is security of tenure. Provided the tenant is not in breach of the lease the landlord cannot interfere with the tenant’s use of the premises for the conduct of the business. A person who uses a license does not enjoy the security of the tenure of the lease. A licensee may be required via the owner to leave the premises in a short period of time once the license is cancelled by the owner of the premises.

The advantage of the license is that if the business owner decides if he or she does not need the premises any longer he or she can walk away from the premises without the difficulty of liability for unpaid future rent.

Leases of premises may last for several years, requiring substantial commitment from the lessor and the lessee. Rent and outgoings, rent reviews, options to renew, right to sub-let, parking and signage rights, and performance bonds/guarantees are some commercial clauses of which you should be aware. Also, there are legal requirements governing commercial leases.

It is important you know to what you have committed yourself and you should obtain legal advice. We understand local leasing practices, common dispute triggers, and the practical issues faced by landlords and tenants in Queensland.