PROPERTY & YOU – PAUL MCKENZIE, ABS CONVEYANCING
Most business owner-operators rent their business premises (commercial office, shop, or industrial property) from a landlord, paying rent, GST, outgoings and with tenant rights / obligations.
Important to engage the right solicitor to review the commercial lease document, before signing and exchanging. To make sure terms, conditions, your tenant rights, and obligations are in order.
Two main considerations to look out for, your permitted use, and your business risks. Permitted use – make sure you do your own homework and research, to make sure your business operations are a permitted use, both with any council DA (Development Applications) requirements, if needed and if in a strata property, for any strata by laws requirements/restrictions. For example, an industrial strata warehouse complex might have restrictions on chemical manufacturing or storage.
Business risks – the commercial lease document from the landlord’s solicitor, could have tenant obligations, that could include risks involving strata related contractor trades people entering into the business premises.
Make sure your solicitor reviews such clauses, ask for amendments if needed, and get your business insurance broker involved, to make sure you are covered for such risks, in case such risks do occur.
