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($AUD):
$308
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Estimated Time to Build: 12 - 16 Minutes
Jurisdiction: Australia Wide
Printing and Binding (Optional) [?]:
• Regular Binding - $41.8
Download the Commercial Lease Checklist
Sample is not available for this document.
If you are trying to deal in retail shops or premises then this lease agreement will not be legally binding. Please consult your local lawyer.
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Different requirements apply for residential leases and this lease agreement will not be binding on the tenant of residential property.
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The Landlord is the person who owns the property.
If the Self Managed Superannuation Fund owns the property, then select 'Self Managed Superannuation Fund'.
If somebody other than a Super Fund owns the property (e.g. your company) then choose 'A human or Company'.
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If you are renting property owned by your SMSF you should have a Commercial Lease Agreement in place at all times.
As Trustees of the Self Managed Superannuation Fund you have to act in the best interest of the SMSF at all times. Therefore, a proper Commercial Lease at a commercial rent is part of doing the right thing. If you are leasing to a member or a related party of a member then you need the Commercial Lease even more. This is because the law prohibits regulated superannuation funds from leasing assets to related parties. However there is an exception to the rule: Where the property is business-related real property and there is a legally binding lease arrangement between the parties.
You receive a more detailed explanation with your Commercial Lease documents if you choose SMSF as Landlord.
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Yes, it can.
Select `A Human or a Company is the Landlord`.
On the next page type the whole of the Trustee's name in the first box.
E.g. `Michael Jones as trustee for the Singleton Family Trust`
E.g. `Lion Industries as trustee for the Allendale Trust`
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Chattels are not fixed to the ground. They are any movable item of property.
E.g. A picture or a painting attached to the wall is a chattel. If it is painted on the wall it is a fixture.
Why is this important?
Under the Agreement only fixtures are part of the lease. Chattels are only included if provided by the Landlord.
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There is no legal requirement to have a guarantor. However, we have made provision in clause 18 for a security amount to be paid by the Tenant.
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Enter the whole title of the Trustee in the first box.
E.g. "Solid Brass Pty Ltd (ACN 123 123 123) as trustee for the Smith Family Trust"
or "John Allen Smith ATF Smith Family Trust"
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Yes, you should include it.
Type the company name and ACN as they appear on your official documents. Put the ACN in brackets. The way you type it is the way it will all appear.
E.g. "Silver Lining Pty Ltd (ACN 783 098 881)"
E.g. "Skilled Personnel Limited (ACN 223 880 004)"
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The name of your fund is the name you gave it when you set it up.
Don't type the word "The" in your Fund Name.
E.g. Type "Smith Family Superannuation Fund" and it appears as "The Smith Family Superannuation Fund" in the final document.
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No.
If the trustee is a company just fill in the boxes under "1.". If the trustees are the members just fill in the details under "2."
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Use the address of the SMSF.
The address is on your SMSF Deed.
Alternatively, you can find it on the last tax return for the SMSF.
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Use the address of the Self Managed Superannuation Fund (SMSF).
It is okay to have members as trustees. You can have up to 4 members as trustees. However, we only want 1 address. That should be the address of your SMSF.
The address is on your SMSF Deed.
Alternatively, you can find it on the last tax return for the SMSF.
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Use the registered address of the company.
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Use the address of the person who would be dealing with the Tenants the most.
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If the tenant is a human, use their home address.
If it is a business, company or partnership, use its registered address (the address on all the formal documents.)
If the registered address is the address of the property under this Commercial Lease, then use that address.
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Enter the details of each tenant individually. When you are finished press `Next`.
You can then enter the details of each other tenant by pressing 'add' for a new tenant.
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No.
Only enter the name details for human or company.
But enter address details no matter what.
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Yes, that's right.
Enter as much information as you can.
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That's OK. Just leave it blank.
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You have to pick a start date.
It should be the date when the Tenant is allowed to move in.
Rent should be payable from this date.
You can leave this document until you have found out the actual date. You can access your half-completed document through the "Pending Documents" section via "My Account".
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This means that the lease is ongoing until either the tenant or the landlord chooses to terminate it.
There is no fixed finish date for the lease. It could go for 50 years if both parties are happy.
The only problem is that there is no long-term certainty. Either party can finish the lease with 1 month's notice.
If you want more certainty and security select a fixed-term lease.
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This means that the lease has both a definite start date and a definite finish date.
This is the most common commercial lease agreement.
If you choose a fixed term lease then you can give the tenant an option to extend the lease for further terms.
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If you want an option to renew you must select a "Fixed Term" lease.
The next page then lets you enter the conditions of the option.
Be aware that the option belongs to the Tenant, not the Landlord.
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The Tenant may want an option to extend the lease for another period of time.
The Landlord must allow the extension of the lease, as long as all the rent is paid up to date, and the Tenant hasn’t breached the lease (or fixed up any previous breaches).
The option to renew is granted to the Tenant.
It is a normal feature of a commercial lease.
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As long as you want. But be aware that there are some State planning laws which prohibit long leases for certain types of property. You will generally be okay if the lease is for all of the land on your title, or the lease is for less than 20 years.
Some States/Territories also require you to register the lease if it longer than 3 years.
See a lawyer if you are not sure whether this applies to you.
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This is the length (period) of the new lease that is granted if the option to renew is exercised by the Tenant.
E.g.
The original lease is for 5 years with an option to renew after these 5 years. The 'Renewal Period' is for another 1 year . Therefore the maximum length the lease can last is 6 years (5 + 1).
E.g
The original lease is 3 years with 4 options to renew for 2 years. The maximum time the lease can last is 11 years (3 + 2 + 2 + 2 + 2).
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The maximum is 4.
This means that you, as the Landlord, can grant the option to renew to the Tenant a maximum of 4 times.
After that you have to create a new lease contract.
For example, if the Renewal Period is 2 years, and you grant it 3 times, then your original contract could be extended by a maximum of 6 years (original lease + 2 + 2 + 2).
If 4 grants are not enough, then extend the Renewal Period to cater for your special needs.
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This is up to you.
But remember, if you as the Landlord are the trustee of a SMSF or some other trust, you have an obligation to charge a commercial (market value) rent.
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Sorry.
If that's the case you'll have to do some maths and figure out what the monthly amount would be. The final Agreement only deals with the rent as a monthly figure.
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It's up to you.
Commonly the Bond is a multiple of the rent. So it might be 1 month's rent. Or 2 month's rent.
You can choose an arbitrary amount though.
Or you can leave it out altogether.
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The Agreement states that the tenant pays in advance. You cannot change this.
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Yes. GST does apply. You will have to charge GST if the turnover of the Landlord’s business is more than $75,000.00
GST is a goods and services tax introduced in 2000. The supply of the premises by the you (the landlord and supplier) to the tenant is a taxable supply according to the A New Tax System (Goods and Services Tax) 1999 and incurs GST of 10%.
Enter the rent amount inclusive of GST. (E.g. $1,000 + $100 GST = $1,100. Therefore enter $1,100.
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You must register for GST if your turnover is over the GST registration threshold.
According to section 23-15 of the A New Tax System (Goods and Services Tax) Act, the registration threshold is $75,000.
You can register if your income is less, but there is no requirement.
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That is up to you.
You can:
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This is a list of common outgoings (payments other than rent) that are required for the upkeep of a property.
You can choose who is responsible for what - the Tenant or the Landlord.
The information appears in a table format in your agreement.
Certain outgoings to be passed onto the tenant may not be allowed under relevant state legislation.
Please note clause 45.iii. of the lease that states that clauses or sub clauses that are unenforceable will be severed from the lease and that such severance will not affect the remainder of the lease.
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The selections all default to the Tenant.
Unless you choose otherwise, the Tenant is responsible for paying all of these outgoings.
Certain outgoings to be passed onto the tenant may not be allowed under relevant state legislation.
Please note clause 45.iii. of the lease that states that clauses or sub clauses that are unenforceable will be severed from the lease and that such severance will not affect the remainder of the lease.
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This document has been prepared by the law practice Law Central Legal
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