Lease a commercial property (Owner/Lessor)

We prepare and negotiate commercial leases for property owners, making sure the terms protect your investment and give you proper remedies if the tenant does not perform.

Leasing commercial property generates income, but the lease you sign determines your rights for the entire term. Disclosure obligations, outgoings recovery, make-good enforcement, and default remedies all depend on how the lease is drafted. We act for commercial landlords to make sure the agreement works in your favour, not just the tenant’s.

What is involved in leasing a commercial property as an owner?

In South Australia, leases of retail shops are regulated by the Retail and Commercial Leases Act 1995 (SA), which imposes disclosure obligations on landlords, sets minimum lease terms, and restricts certain landlord-favourable provisions. Commercial leases that do not involve retail shops are not subject to the same statutory regime and are governed largely by general contract law, giving the parties greater freedom to negotiate terms. Regardless of the type of commercial lease, the landlord’s ability to recover outgoings, enforce make-good obligations, and terminate for default depends entirely on what the lease documents provide. We prepare and negotiate commercial leases for property owners to ensure the terms are clear, enforceable, and protective of the landlord’s position throughout the life of the tenancy.

Does the Retail and Commercial Leases Act apply to my property?

The Retail and Commercial Leases Act 1995 (SA) applies to leases of retail shops, which includes premises used predominantly for the sale of goods or services by retail where the rent does not exceed the prescribed threshold. If your property is leased for retail purposes and the rent is within the threshold, the Act applies and imposes specific obligations on you as landlord, including the preparation of a lessor’s disclosure statement before the lease is entered into. We advise on whether the Act applies to your particular lease before the documentation is prepared.

What outgoings can I recover from my tenant?

The outgoings recoverable from a tenant depend on what the lease expressly provides. Common recoverable outgoings include council rates, water and sewerage charges, building insurance, strata levies, and land tax in some circumstances. We draft outgoings provisions clearly so that the amounts recoverable are certain and enforceable, and advise on what the Retail and Commercial Leases Act 1995 (SA) permits in the case of retail leases.

What is a make-good obligation and how do I protect it?

A make-good obligation requires the tenant to return the premises to an agreed condition at the end of the lease, typically by removing fitout, repairing damage, and repainting. The enforceability of a make-good clause depends on how it is drafted, and vague obligations are often disputed by outgoing tenants. We draft make-good provisions with enough specificity to be enforceable and advise on the practical steps for securing the obligation.

What happens if my tenant defaults or stops paying rent?

If a tenant defaults, your remedies depend on the terms of the lease and the nature of the default. For rental arrears, the lease will typically entitle you to issue a notice to remedy and, if the default continues, to terminate and re-enter. We advise on the correct procedure for enforcing default provisions so that your re-entry is legally effective and does not expose you to a claim by the tenant.
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Lease drafted to protect your position from day one.

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Disclosure obligations met so the lease cannot be challenged.

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Negotiation managed so you do not concede more than is necessary.

The lease you sign today governs your rights for the entire tenancy.

A lease that does not clearly address outgoings, make-good, and default remedies will be tested when something goes wrong. Getting the terms right at the outset costs far less than enforcing an ambiguous clause through litigation.

A commercial lease that protects the tenant more than the landlord is a liability, not an asset.

You have a commercial property and you want a tenant in place generating income. But the lease terms need to cover outgoings recovery, rent reviews, make-good obligations, and default remedies clearly enough to be enforceable. A lease drafted without proper attention to these details can leave you without the remedies you expected when the tenancy does not go to plan.
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You want a tenant and the income that comes with it, but not a lease that leaves you without remedies when things go wrong.

You have a commercial property ready to lease and a prospective tenant who wants to move in. The rent looks right, but the lease terms need to be correct before anyone signs. A poorly drafted lease can leave you unable to recover outgoings, enforce make-good, or terminate effectively if the tenant defaults. You want the agreement prepared properly so the tenancy works on your terms.

What's included in your commercial lease service (owner)

What goes wrong when commercial leases are not drafted carefully?

Landlords who use inadequate or generic leases regularly find themselves in disputes over outgoings that were not clearly recoverable, make-good obligations that the tenant refuses to perform, or default procedures that were not followed correctly and rendered the re-entry invalid. In retail leases, a failure to provide the required disclosure statement can give the tenant the right to terminate the lease or seek compensation. These disputes are expensive and time-consuming to resolve, and in most cases they could have been avoided with a well-drafted lease at the outset.

Here is how we protect your investment for the life of the tenancy.

We advise on whether the Retail and Commercial Leases Act applies and what obligations it imposes before the lease is prepared. We draft the lease to clearly address outgoings recovery, rent review, make-good, assignment, and default remedies. We manage the negotiation with the tenant and advise on terms that should be held firm, so the lease you sign protects your position for the full duration of the tenancy.
Three steps to a commercial lease that works in your favour.

Disclosure met, lease drafted, tenancy in place on your terms.

1

Advise and prepare.

We advise on the applicable regime, prepare the disclosure statement if required, and draft the lease to protect your position.

2

Negotiate and finalise.

We manage negotiation with the tenant's solicitor and advise on which terms are essential to maintain.

3

Execute and register.

We manage execution and registration of the lease where required and confirm the tenancy is properly documented.

Commercial property lawyers experienced in leasing for landlords across retail and non-retail commercial premises in South Australia.

Commercial property owners often come to us after discovering that their existing lease does not give them the remedies they assumed it did. Getting the terms right before the tenant moves in is far less costly than trying to enforce ambiguous provisions through dispute resolution later. We prepare commercial leases that clearly allocate obligations, protect the landlord’s recovery rights, and give you a workable framework for the tenancy.
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We understand you want to know the cost, before we get started.

We will map out our process, from beginning to end, so you know what the journey will look like before you get started.

We will provide you with a clear and detailed Work Proposal covering each step along the way.

Our fair fees are all-inclusive. No hidden costs for telephone calls, emails, photocopying, couriers, or coffee.

Our great lawyer guarantee

We want to be part of your team over the long term. We achieve this by adhering to these core principles:

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Take the time

We listen carefully to understand what you want to achieve. Then we thoroughly explain our advice and step you through the documents. You can be sure you know the full consequences.

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Share our knowledge

We will pass on as much knowledge as we can, so you can make your own informed decisions. We want to make you truly independent.

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Stick to our knitting

We only do what we're good at. You can be confident that we know what we're doing and don't pass on the cost of our learning.

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Work as one team

Someone will always be available to answer your questions, or point you in the right direction. You will also benefit from a range of perspectives and experience.

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Fair pricing

For advice and documents, we provide a fixed or capped quote so you don't take price risk. If you're in a dispute, we map out the process and costs so you know what to expect.

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It's your show

We're not in this for our egos. We're in it for a front row seat to witness your success.

Ready to get your commercial lease prepared properly?

A commercial lease that is drafted carefully at the outset protects your income and your remedies for the entire tenancy. We act for commercial landlords across South Australia to prepare and negotiate leases that work in your favour. Contact us to discuss your property and what the lease needs to cover.

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