Leases: Do You Know the Terms and Conditions
- Nov 22, 2013
- 2 min read
Leases: Do You Know the Terms and Conditions
It is important to be aware of your obligations if you are thinking of entering into a lease whether it is a lease of real estate, or a lease of a car or plant and equipment or any other item. Most leases have the same central terms which could land you in some difficulty if you do not comply with them.
The principal obligation under a lease is to pay the rent. Although leases of premises have certain protection against landlord’s retaking possession, leases of commercial or industrial premises usually give the landlord the right to retake possession and lock you out if the rent is more than 14 days behind.
All leases have conditions requiring you to use the property or the equipment for a particular purpose and uses outside that purpose must be consented to by the owner. They usually also have obligations that you maintain the leased property in reasonable condition. Although most leases exclude your liability for fair wear and tear, do not assume your lease relieves you of that liability.
We had a recent case where a warehouse was leased to a goods distributor. The lease required the tenant to keep the property in the same condition as it was at the commencement of the lease. There was no fair wear and tear exception. As it turned out, the tenant’s fork lift trucks damaged the floor in heavy traffic areas just through day to day use. In other words damage caused by fair wear and tear. The landlord demanded payment of the $8000.00 repair bill.
There are many more aspects of any lease which should be considered before you enter into it. VRA can assist you with your lease.
Prepared by Partner Joe Vizzone. Joe has over 25 years experience in property and leasing. If you have any leasing, lease, property, or real property queries, please do not hesitate to contact us on 02 9667 1271 or info@vrtlawyers.com.au
Comentarios