• Commercial & Business Law

    Commercial & Business Law

    We are first and foremost lawyers for business people.  Our team will work with you to develop, manage and execute your business plan while ensuring you exploit opportunities, manage risks and achieve commercial success.  

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  • Dispute Resolution & Litigation

    Dispute Resolution & Litigation

    Specialists in commercial dispute resolution, we appreciate that resolving a dispute requires more than just following court processes. You can trust Taurus to be in your corner, and fight to deliver results.

     

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  • Property & Construction

    Property & Construction

    Enhanced by a wealth of experience in property law, Taurus can assist businesses with everything from managing leases, to complex property development projects.

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  • Intellectual Property

    Intellectual Property

    One of the most valuable assets of any business is its intellectual property. We empower our clients to protect their brand, systems and confidential information by offering them a broad range of legal services related to their IP.

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  • Insolvency & Bankruptcy

    Insolvency & Bankruptcy

    We act on behalf of creditors, debtors, and insolvency practitioners in a variety of re-structuring and insolvency matters.

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  • Debt Recovery

    Debt Recovery

    We will recover your debts as if they were our own. For many owners, directors, and managers, debt recovery is one of the most confronting and challenging aspects of running a business. It is also crucial to the cash flow of the business, and therefore critical to its financial success.

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  • Employment Law

    Employment Law

    We help our clients meet the demands and challenges of managing their workforce.

    Our team can assist in any employment law matter ranging from drafting employment agreements to giving termination advice and handling unfair dismissal applications.

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ENQUIRE

Almost every business has at least one lease. Leasing is a major overhead often not very well understood by business tenants. Learn how to get more out of your lease from the below do’s and don’ts.

DO’S OF COMMERCIAL LEASING

Do shop around

  • It goes without saying that it is worthwhile to hunt around for the best deal.
  • You can’t make an informed decision on a premises until you’re aware of your options. This applies even in markets where commercial space is tight.
  • Take as much time as needed to assess the leasing landscape, and plan on visiting several potential sites.

Do cap percentage rent increases

  • Consider negotiating a cap on the percentage increase to the rent, to avoid unmanageable costs later on.

Do consider length of term / options

  • Unlike residential leasing, flexibility must be an essential consideration for growing companies. Even though location will influence rental costs, a business on the move can’t afford to be locked into a long-term lease.
  • If you have a growing company, then a long-term lease might not be preferable, as you wouldn’t want to be locked into a space that you’ve outgrown some time ago.
  • Most landlords prefer long-term leases, and so if it’s a new business, it might be worthwhile asking the landlord for a short-term lease with an option/options to renew. This may increase the rent, but it could be better than agreeing to a lengthy term.

Do consider negotiating the rent amount, and requesting a rent-free period, and fit-out allowance

  • Commercial landlords are used to negotiating with tenants. You might consider that they may have even intentionally inflated rental costs to leave room for negotiation. From a tenant’s perspective, it is important to negotiate until you have reached an agreement everyone can live with.
  • It is common for the parties to agree to an initial rent-free period.
  • Often bigger landlords, in order to attract a bigger tenant, may be open to also providing a fit-out allowance.

Do consider repairs and maintenance

  • Who is responsible for maintenance and repair of the premises, including the air-conditioning and heating systems? Responsibilities for the building and any equipment are often shared between landlord and tenant. The lease should spell this out clearly.
  • The tenant should be responsible for repair subject to fair wear and tear.
  • The landlord should be responsible for structural repairs.

Do consult your lawyer

  • Commercial leases are usually lengthy legal documents containing numerous terms and conditions. Unless you have a legal background, there is a good chance you will miss something important, so make sure to contact us to review any offer to lease (as these can be binding), and of course any proposed lease, or lease variation/extension, before you sign anything.

DON’TS OF COMMERCIAL LEASING

Don’t miss our upcoming presentation

In terms of the Don’ts of Commercial Leasing (and many more Do’s)… you’ll just have to or look out for our invitation to our upcoming Seminar!

Posted by Taurus Legal Management