The Federal Government has just released its much-anticipated Mandatory Code of Conduct - SME Commercial Leasing Principles during COVID-19.
The Code adopts principles emanating from National Cabinet Meeting discussions concerning commercial tenancies and is to be implemented by states and territories through legislation or regulation. Until is it effected at a state level it has no legal force. However, landlords and tenants need to be prepared for the eventual discussions and amendments to current leasing arrangements which need to be negotiated on a case by case basis.
When renting business related property it is important for both landlords and tenants to understand the relationship they are entering into and the rights and obligations that they each have, the document that governs this relationship is usually a Commercial Lease.
So what is a Commercial Lease?
A lease is a legally binding contract that gives you certain rights to a property for a set term. A commercial lease is used when leasing property used primarily for a business. Common examples include office accommodation and industrial premises.
You should never sign a lease without understanding all of its terms and conditions. If you don't understand what you are agreeing to you could experience serious financial and legal problems.
It's important to properly investigate the property and lease document before you sign. It is a good idea to ask your lawyer to explain each clause of the lease to you. Your lawyer can give you legal advice, draft new clauses and help you negotiate the terms and conditions to suit you.