What should the lease include?

What should the lease include?

While there is no standard lease as such, a lease should include:

The lease term (start/end dates)

How the rent is calculated

Any agreed securities (eg. cash bond, third party guarantee, or bank guarantee)

Who is responsible for the costs of installing fixtures and fittings in the premises (the fit-out)

Who repairs and who maintains the premises and equipment A description of the premises and the address

If and how the rent can be changed

The type of business the lessee intends to operate (i.e. the permitted use)

Any outgoings the lessee must pay (e.g. land tax, cleaning, security, council rates, water/utility charges, etc)

Core trading hours (when the premises must be open for business) - if applicable

If there is an option to renew or extend the lease Any ‘make good’ provisions

Make sure that the lease includes the specific things relevant to the particular premises. Disputes often occur over small issues due to a lack of clarity in the lease. Importantly, no lease can override the Act which itself sets out certain base requirements.