Renewing a Commercial Lease – Second chance if you’re lucky!
If you’re a tenant in Queensland and your lease is coming to an end, you might be wondering what your options are to extend your lease.
Depending on the contents of your commercial lease and your landlord’s preferences, there are a few different options available to you.
Some of those options include:
- Negotiate a new lease with your landlord: If you’ve been a good tenant and your landlord is happy with your tenancy, they may be open to renewing your lease for another fixed term. This option provides you with the most certainty as you’ll know exactly how long you have the property for and what your rent will be.
- Request a periodic lease: If you’re not ready to commit to a fixed term lease, you can request a periodic lease. A periodic lease is a month-to-month lease that continues until either the tenant or the landlord gives notice to end the lease. This option provides you with more flexibility and allows you to end your tenancy with shorter notice if you need to move out BUT the downside is the landlord too can terminate the lease on short notice if he/she gets a better offer. You really are living month to month under this arrangement.
- Exercise your option to renew: Check if your lease has option provisions. Some leases come with an option to renew clause, which gives the tenant the right to extend the lease for an additional period provided certain conditions are met If your lease includes an option to renew clause, you’ll need to provide written notice to your landlord but be careful, time limits usually apply for the giving of notice.. Make sure you read the lease carefully to understand the terms and conditions of the option to renew clause. This is something we can advise you on.
- Apply for a new lease under the Retail Shop Leases Act 1994: If you’re a tenant of a retail shop, you may be able to apply for a new lease under the Retail Shop Leases Act 1994. This act provides some protections to retail tenants and allows them to apply for a new lease when their current lease is due to expire. However, there are certain conditions that need to be met, and it’s important to seek legal advice before making an application. Again, this is something our firm can assist with.
In conclusion, there are several options available to tenants in Queensland who are looking to extend their lease. It’s important to consider your situation and your landlord’s preferences when deciding which option to pursue. Make sure you read your lease carefully and seek legal advice of your rights and obligations.
Our commercial lawyers can assist both landlords and tenants with commercial leases including retail leases. We can be contacted on 07 3808 7777 or firstname.lastname@example.org.