A lease can be very involved and is best to be discussed with a Solicitor. Without the correct advice you may be at risk of legal and financial loss.
BlueKey Lawyers are experts in Commercial Property and Commercial Lease Agreements. Our solicitors will ensure that you and your investment are in safe hands and will be in communication with you all the way throughout the process.
How can BlueKey Lawyers help with your Lease?
We provide Leasing advice such as;
- Drafting of a Lease Agreement
- Review of a Lease Agreement
- Lease Disputes
- Lease Re-negotiation
Landlord/s BlueKey Lawyers can assist the Land Lord to ensure that a commercial lease agreement protects and provides safety from concerns that a tenant may cause upon your property. We will assist in the; Drafting of a lease agreement, renegotiation of a Lease agreement and dispute of a lease. Our Commercial lease lawyers are experts and will guide you through the process ensuring that your investment has the highest standard of legal protection.
Tenant/s Looking to enter into a new lease or modify a current lease? BlueKey Lawyers will ensure that the terms of the lease agreement secure your rights and allow you to run your business within a premises that suits your businesses needs. We assist businesses get into the right premises whether it be with a; Industrial lease agreement, Retail shop lease agreement, Commercial office lease agreement or even a lease for a storage yard. As expert commercial lease lawyers, we will guide you all the way and ensure that nothing trips you up.
What is involved in a lease?
The following items are what usually makes up a lease, it is always recommended to speak with a Solicitor to ensure that you are meeting your legal obligations under the proposed lease.
Outgoings: Outgoings are the costs of the building that are charged to you as the lessee from the lessor. These costs can include;
Statutory Outgoings: Land tax, Council Rates, water & Sewerage.
Operational Outgoings: Body corporate fees, Cleaning of common areas, Garden services, lift servicing, Air-conditioning servicing, Pest control and General maintenance. -Depending on the type of lease you have entered into (Gross or Net), the costs can either be a fixed cost or vary depending on the true cost of outgoings.
Gross Lease: This is a lease where the outgoings are included in the rent and will be a fixed rate. You might see $40,000Pa Gross + Outgoings + GST which will mean the outgoing cost is on top of the cost of the lease and GST is added to the full amount.
Net Lease: A net lease is where outgoings are charged to you at the actual cost to the lessor. Meaning that this cost can vary on an annual, half or quarterly basis. A Net lease can often be more beneficial should there be a minimum amount of maintenance however should a premise be in disrepair, this could be a costly.
Increases: Usually a lease will have a prevision for an annual increase of rent by a percentage or CPI which ever is highest. The percentage is usually around the 3-4% mark which follows the standard estimated CPI. -CPI or consumer price index measures changes in the price level of market basket of consumer goods and services purchased by households. The CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically.
Legal Costs: A Lessor will usually request that their legal costs are covered by the lessee to have the lease drawn up. This can be a negotiable term but needs to be agreed upon to ensure all parties are happy.
Make Good Previsions: This provision stipulates that the premise is left in a condition that is of an equal or higher standard to that in which it was originally handed over in the beginning of the lease. These can differ, and it is best to obtain legal advice to ensure that at the end you are not left with a costly obligation.
Security Bonds & Guarantees: A security bond is much the same as one you would have when renting a house. An amount of funds held aside should the lease be breached in a way that causes a financial loss to the lessor. This can be held by the lessor or via a bank guarantee in which the bank holds these funds in trust for the beneficiary (lessor).