Lease Negotiation

Lease Negotiation Lawyers assisting Landlords

As a retail or commercial landlord, negotiating the right terms in the lease is important to give you maximum protection and increase the value of your investment.

Our lawyers are very experienced at negotiating on behalf of landlords, we can help to galvanise your position and with a tightly drafted lease and documentation. Invariably the complexity of lease negotiations is determined by the type of property and if there are industry relevant issues that need to be considered ie petrol stations or retail. Our team can assist with lease negotiations across a wide range of property and industry types.

Our team has comprehensive knowledge and experience in negotiating different types of issues for landlords. Some lease negotiations we routinely assist with include:

Rent and Rent Reviews

The starting rent is important but so is the method or rent view. There are advantages at particular times in the market in choosing either fixed rent reviews, CPI rent reviews or market reviews.

Our lease lawyers can help explain the advantages and disadvantages between the different methodologies and what impact they are likely to have in the future. Rent reviews are contentious and we seek to ensure that there is clarity around the process.

Option for Renewal

Options for tenants should be considered carefully and generally used sparingly unless there is a commercial reason as to why it would suit you.

Security Deposit

Getting the maximum-security deposit can only be beneficial to a landlord. The form of security deposit will also need to be addressed. Will it be cash paid to you or a bank guarantee? Depending on the profile of the tenant and property we can secure your position.

Permitted Use

There is more to deciding on the permitted use than meets the eye and it is usually best to consider with legal advice.


Tailored insurance clauses will make sure that there is adequate insurance for your asset. Insurance can be taken out by you as a landlord or the tenant can obtain the insurance, in a matter approved by you. It is important to make sure that the details and the amount of insurance are sufficient to protect you.

Fit Out

Fit out presents a challenge that needs to be carefully negotiated given that your asset is going to be modified. What consents are required? What permits are required? Who is the builder? What occupational health and safety measures will need to be in place? These are just some of the questions your lease lawyer will be able to advise you as to different options. We also make sure that the lease agreement is drafted appropriately to address these issues.

Lease Incentives

If you are providing an incentive to the tenant there are a variety of options. It may be in the form of I rent free; or reduced rent across a certain period of the lease, or even a contribution towards the fit out. It is important that the final terms of these arrangements must be precisely negotiated and documented in the lease.

Assignment and Subletting

The more control as a landlord that you can have over this process the better. Tenants will want minimal restrictions in having the right to assign or sublet. As the landlord, it is better for you to have an absolute discretion when considering a proposed transferee (assignee) or subtenant (sub-lessee).

Tenant Default and Termination

We always ensure that the default clauses are strong, the notice period for remedying defaults is tight and that the remedies available to the landlord in the event of a breach are as broad as possible. This will allow you plenty of options to enforce your rights as a landlord if the tenant defaults in the future.

Guarantees and Personal Liability

Obtaining personal guarantees from a tenant’s directors is normal unless the tenant is of a very high calibre (for example a brand name company) and/or if a bank guarantee is available from the tenant for an amount equivalent to several months’ rent and outgoings.

We can assist you in your lease negotiation

Being well represented means having a high degree of skill in your corner. Our lease lawyers are experts in assisting landlords in any type of lease negotiations and ensuring that their lease agreements are carefully drafted.

We can help landlords of any size Australia-wide. Whether you have a retail, shopping centre, industrial or commercial premises we can provide the right advice across a broad range of industries.

Call us on 1300 907 335 or otherwise please feel free to contact us via the contact form on this page for a prompt response.

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