The success of your business may depend on a well-negotiated lease.
Retail Leases in Victoria among other laws is governed by The Retail Leases Act 2003 and accompanying regulations that complement the Act. If you are entering into a lease, it is important that you are aware of the regulations. Choose someone who has experience in the field of commercial property leasing.
If you are thinking of leasing property to establish your new business you should consult a solicitor. Even when using a solicitor, you should make absolutely sure that you understand all the provisions of the lease – ask questions until everything is clear and you are certain about the details.
Leasing law is extremely complex. It is very important that you consult a solicitor to help you negotiate your lease.
Experience matters – Contact VICTORY LAW
Questions you may have to answer
1. What do you want to use as your name on the lease? The name required is that of the actual applicant, individual/s or company. An incorrect name will delay final settlement of the lease.
2. What is the address of your business or company?
This should be the registered address of your business or company, and give both your operating and postal addresses if they’re different.
3. Do you have partners or directors? Landlords can ask for names, private addresses and dates of birth of partners or directors in order to complete credit investigations.
4. Are there other names and addresses you may need to provide? You may need to give contact details for your accountant, bank and references. References should be from suppliers providing credit.
5. What is the nature of your business? This is simply a brief summary of your business operations which will help both parties achieve the right leasing and rental agreement.
6. Will the purchase of equipment be part of your set up? As part of the lease agreement, you could be asked for a detailed description of equipment purchased, complete with serial numbers.
7. Are you aware that ownership of some fixtures or equipment will be included in the terms of the lease agreement? A written acknowledgement of the landlord’s ownership of fixtures or equipment may need to be included as part of the lease agreement.
8. Can you provide an estimate of your leasing requirements for the next twelve months?
Estimating your leasing requirements for the next twelve months means lease agreement negotiations can be limited to once a year.
9. How long have you been operating as a business? Landlords are not keen on tenants with little experience. If you’re in this category you’ll need to provide evidence of a strong cash flow.
10.If you’re negotiating for lease credit, what financial statements can you provide to support your case? You need to show: the net worth of your business; a profit and loss statement; evidence of cash flow surplus; an estimated cash forecast.
11.Are you aware that by signing the lease, you are legally bound to pay rent and outgoings for the full term of the lease? This financial commitment should be spelt out in your business plan. An early termination of the lease could be financially devastating.
Sources:
Retail Leases Act 2003
Retail Leases Regulations 2013
http://www.business.vic.gov.au