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Kennethti
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AgentMail, post: 81917 wrote:
Ok, a scary moment for us, we are just about to take on a 12 month lease for a small office tenancy. I just wanted to check with the wider community, are there any particular things I should be keeping an eye out for on a commercial lease property?

In short, it is costing us next to nothing for the 12 month lease and is a 1+1 option. We are aware of the rates etc. that we are liable for and there is no body corp to worry about, I just wanted to make sure I was not missing something.

Also, on the insurance side of things…

Do we now have to have public liability (we never had it before but I understand we need it to cover delivery drivers etc. and someone who might accidentally stumble through the door)

Have found a policy that covers public liability, theft and business interruption, so I think that should be all we need?

Will just be nice to get the spare room and garage back :)

Thanks for any/all advice

Hello Agentmail,

My (usual) advice is that you should get a lawyer to have a look at the documentation – they may be able to point out certain things to you that you might miss.

That being said, I would normally focus on:

  1. The property – Size and diagram? Is a title search necessary? (we say it is)
  2. Parking – Is there one provided, do you pay an additional fee?
  3. Outgoings – Who to pay?
  4. Equipment – Does the premises come with any? Do an inventory and condition report, and make sure any insurance obtained covers the cost of any potential break down.
  5. Fit-out – Do you need to do any fit out work? To what standard?
  6. Condition – Check all electrical outlets, sockets, telephones, carpet, air conditioning, etc
  7. Insurance – Public liability is a must. Consider if the lease requires you to have plate glass as well.
  8. Parties – Who is the lessor? Do they own the property or is the lease a sub-lease? If so, you need to see the head lease.

I write on a blog called business lawyer, which provides basic information and tips for businesses. You can read it at http://www.business-lawyer.com.au.