When you plan to start a business in an area like Perth, Western Australia, it is necessary to have a retail lease agreement. The lease agreement is nothing but a formal document that specifies the relationship between the tenant and the landlord or leaser. It will also be vital for you and your landlord to understand the terms and conditions associated with the lease agreement.
A retail lease varies according to its size, length, and the number of associated terms and conditions. For help, you consider consulting a competent lawyer. This blog discusses the importance of the lease agreement and what rights you can have as a tenant.
Why Is A Retail Lease Agreement Important In Perth?
A commercial lease agreement between the tenant and the leaser in Perth is controlled by the Commercial Tenancy (Retail Shops) Agreements Act 1985 of Western Australia. This act protects many rights of the tenants, which are discussed here. Going through these benefits will help you understand why having a retail lease agreement is necessary for your rented office.
Rent is the commercial negotiation made between the landlord and the tenant. It depends on several factors like the office's location, condition, size, facilities provided, etc. However, when you take that premises as a lease, you should know specific rules that you need to comply with.
For example, if you choose turnover rent, you have to pay your rent as a percentage of the total business turnover for one year.
2. Rent Reviews
A clause is usually included in most leases to allow parties to review rent annually. You should know that the lease will have no right to allow more than one review method at a given time.
You can also have additional rights where the lease gives you a market review. By market review, we mean change in rent as per the current market price.
3. Lease Renewal
For six-month leases, the minimum term is at least five years. This five-year period can be for an initial term or a part of an initial term. You can also choose a term of less than five years. But for that, you will need the approval of the State Administrative Tribunal.
According to the Act, a landlord has to provide prior notice of the expiry date for the renew option. If you do not receive the notice, you can lengthen your chance. For professional help, it will be better to search for retail lease agreement lawyers and choose the best professional from them.
4. Operating Expenses
As a tenant, you have to pay for the operating costs of the office premises. Operating costs are the landlord's expenses needed to manage and maintain the office building and compound. These costs include charges for repairs and services of elevators, hiring security guards, facilitating cleaning, purchasing security equipment, etc.
According to the Act, the leases must mention whether a tenant has to pay these costs before entering the lease. Another benefit of having a proper agreement lease is that you will not be required to pay for the expenses for the portion that does not fall in your office area.
5. Legal Fees
As a tenant, you will not have to pay specific legal fees and other landlord costs. Thus, you should not pay for the agreement's preparation fees or the negotiation costs incurred when the lease is finalised.
What Are The Rights You Can Have As A Tenant?
Throughout your tenancy in Western Australia, you can enjoy all the following rights. These rights can secure your position and help you do your work freely and achieve your business goals.
How Can A Lawyer Help?
From implementing various conditions and terms to preparing the complete agreement, a commercial lawyer can help you in many ways. Hence, you must choose your legal advisor wisely. Commercial Lawyers Perth WA can help you with references.
Complete the form below for a fast response