A commercial lease is usually the biggest contract a small business ever signs, and it's written by the other side. Before you sign, transfer, extend or walk away from a lease in Melbourne, have it read by someone who knows where leases bite.
Before you sign: the three clauses that catch tenants
- Rent reviews. Market, CPI, fixed or ratchet: the method decides what you pay for years. We check the mechanism, not just the number.
- Make-good. What state must you return the premises in? The vaguer the clause, the bigger the bill at the end.
- Personal guarantees. Sign carelessly and the company's lease becomes your house's problem. Often negotiable, if raised before signing.
Retail or commercial? It changes your rights
Many Melbourne "commercial" leases are actually retail leases under the Retail Leases Act, which gives tenants real protections: disclosure statements, minimum terms, outgoings rules. Which side of the line you're on changes everything. See the retail lease disclosure statement.
Lease events we handle
Assignments and transfers, subleases, surrenders, renewals and options, rent disputes and make-good disputes.
Outgoings: the rent behind the rent
The advertised rent is rarely what a tenancy costs. Outgoings can add land tax (where recoverable), owners corporation fees, insurance and maintenance on top, and the lease decides which of those you pay and how they are reconciled. Under the Retail Leases Act some outgoings cannot be passed on at all. We read the outgoings clauses the way the landlord's accountant will, before you sign rather than at the first reconciliation.
Options and renewals: use them or lose them
An option to renew is only as good as the notice that exercises it. Miss the exercise window, or exercise it incorrectly, and the option is generally gone, along with your bargaining position. We diarise and handle option exercises, negotiate the market rent review that usually comes with them, and advise when walking away beats renewing.
Frequently asked questions
How much does a lease review cost?
A fixed scope agreed before we start. Against the term of the lease, it's the best money in the deal.
How fast can you turn a review around?
Usually inside the week, faster when a deal is moving. Tell us the deadline.
The landlord says the lease is "standard". Is it?
There's no such thing. "Standard" means standard for the landlord.
Can I get out of a personal guarantee I've already signed?
Harder than avoiding one, but there are options depending on the lease and the circumstances. Worth a conversation before you assume you're stuck.
Get the lease read before it's binding. Call (03) 9600 0162 or visit Level 10, 167 Queen Street, Melbourne VIC 3000.
