Back to insights

Critical obligations to exercise a further term of your lease

A key element of occupying a commercial premises as a tenant is ensuring you exercise an option to renew your lease within the desired timeframe provided.  Correctly undertaking this obligation is critical to the longevity of any business looking to maintain occupation for continued success.  By not acting within the required time, or by undertaking the option within the desired manner, can result in undue stress and conflict with the landlord or its agent.

Key aspects that need to be considered:

  • Lease Agreement – read this document. It is a binding contract between you and the landlord.  It sets out the terms and conditions of the agreement and those which each party agrees to fulfil during the period of the lease.  Many commercial leases have strict obligations of the tenant or the landlord which need to be respected.  Some leases have additional annexure documents that extend or modify the standard conditions of the lease agreement document.  Ensure you have read and understand these documents.
  • Options for Exercising – ensure you act as early as practicable. In Victoria, the Retail Leases Act 2003 requires the landlord to notify the tenant of any further option period it may have and requires the landlord to notify the tenant not more than 12 months, or less than six months from the last date to exercise the option.  In most cases, this means that between 9 and 15 months before the expiry of the term, you will be notified of your further term.  This is a good prompt for you to make some decisions as to the next few years your business plans to occupy the premises.  A commercial lease which is not governed by the RLA 2003, does not require the landlord to notify the tenant so the obligation of exercising the option sits with the tenant.  Diarising the last date to exercise your option, or the deadline date, and maybe some prompt dates a month or two prior, is smart to ensure you don’t leave yourself in a precarious position.  Failing to exercise your option by the required date, may result in you forfeiting your further option periods and open to be vacated by the landlord.
  • Written Notification – When notifying your landlord or its agent, ensure it is done in a written form and by the authorised person within the business.  Having the office manager sign the documents would not entitle you to exercise your option when the Director has executed the lease.  Many commercial leases now have an allowance for acceptance via digital form so email would be acceptable.  If you post the document, keep a copy for your records.  Ensure you receive confirmation once submitted that the landlord or its agent has received your intention to exercise the option.

One important element to keep in mind is that by signing the option to renew a lease for a further term, you are legally binding yourself to the next period, regardless if the agreement is documented in the form of a lease renewal.  Many tenants think they can sign the option and until they sign the renewal documentation, can back out and vacate.  Be very careful that you fully understand the implications of notifying the landlord of your intention to renew, if you are unsure of the intent of the business to remain in the premises.

McRae Property Commercial is well placed to assist you with navigating this period and to act on your behalf as an independent voice.  As tenant advocates, we are in-tune with the current market rates and incentives offered to the market and are well placed to negotiate these in your favour.

Previous insight

Post a comment:

Comments:

  • azavew Feb 27, 2020, 11:30 AM (33 hours ago)

    bWNyYWVwcm9wZXJ0eWNvbW1lcmNpYWwuY29tLmF1 <a href='http://mewkid.net/buy-phicalis/#udawejo-a'>udawejo-a.anchor.com</a> [URL=http://mewkid.net/buy-phicalis/#udawejo-u]udawejo-u.anchor.com[/URL] http://mewkid.net/buy-phicalis/#udawejo-t http://mewkid.net/buy-phicalis/#udawejo-t http://mewkid.net/buy-phicalis/#udawejo-t http://mewkid.net/buy-phicalis/#udawejo-t http://mewkid.net/buy-phicalis/#udawejo-t http://mewkid.net/buy-phicalis/#udawejo-t http://mewkid.net/buy-phicalis/#udawejo-t http://mewkid.net/buy-phicalis/#udawejo-t erufakn

  • Kiasoymn Feb 26, 2020, 7:54 PM (2 days ago)

    <a href="http://celebrexcap.com/">celebrex 200 mg daily</a>

  • Miasoymn Feb 26, 2020, 7:10 AM (3 days ago)

    <a href="https://acyclovirzov.com/">acyclovir 400 mg</a> <a href="https://suhagra2020.com/">suhagra for sale</a> <a href="https://albuterolsale.com/">albuterol cost</a> <a href="https://clomidpill.com/">generic over the counter clomid</a> <a href="https://synthroid20.com/">synthroid generic</a>

  • I Tip extensions Feb 26, 2020, 1:55 AM (3 days ago)

    I Tip extensions
    Color is Harvest Gold. This is a brand new wig in the Box.
    I have examined her thoroughly and she is in excellent condition! Since each monitors color settings are controlled by the buyer,
    we cannot be responsible for the color displayed on your monitor.


    I Tip extensions Soon, movie stars were eager to sample the "flexible greasepaint", while movie
    producers sought Factor's human hair wigs. He allowed the wigs to be rented to the producers of old Westerns,
    on the condition that his sons were given parts. The boys would watch the expensive wigs.Factor marketed a range of cosmetics to
    the public during the 1920s, insisting that every girl could look like a movie star by using Max Factor cosmetics.In the
    early years of the business Factor personally applied his products to actors and actresses.
    I Tip extensions

    human hair wigs Almost every successful musician/artist/actor I know
    either has a connection in the industry ( usually family) or has family with
    enough money to cover a lot of their costs. Lots of success stories of struggling artists ignore the fact that they have a trust fund they are living
    off or a parent/aunt/uncle in their industry.
    The amount of time and effort you have to put in to be successful is nearly impossible if you also have to work full time to pay rent and fees yourself.

    human hair wigs

    clip in extensions This 100% Remy Human Hair wigs have superior air circulation provided by their wig
    construction. Superb wigs are made to look fully natural, allowing you to change your
    style and Color without any damage to your own hair, or to give your hair a rest from the heat and chemical styling.
    The natural looking design was created for every women..
    clip in extensions

    Lace Wigs Henry is said to have made a brilliant speech in defense of the rights of voters, but the text
    does not survive. Henry lost the case, but met influential members on the Committee of
    Privileges and Elections, such as Richard Henry Lee, Peyton Randolph and George Wythe.[23] In 1765,
    William Johnson, the brother of Thomas Johnson (who had been one
    of Henry's clients in the ), resigned as burgess for
    Louisa County. As Henry owned land in the county (acquired from his father
    to settle a loan), he was eligible to be a candidate, and he won the seat
    in May 1765. Lace Wigs

    U Tip Extensions Also note that the book gave him 3 options: Slytherin, Gryffindor, and
    Ravenclaw (sorry Hufflepuff). The Hat says of Harry "Difficult. Very difficult. Murdering someone is messed up, but so is punching someone in the face. However, we don see them the same way. People are much more outraged about murder than punching someone in the face. U Tip Extensions

    wigs online He recovered his weapon, and was thought to angrily shout "Damn you, fire!", then discharged it into the crowd although no command was given. Palmes swung his cudgel first at Montgomery, hitting his arm, and then at Preston. He narrowly missed Preston's head, striking him on the arm instead.[27]. wigs online

    full lace wigs Wash your hair with a moisturizing shampoo. Don't use a shampoo that leaves your hair feeling "squeaky clean".
    In my experience, that squeaky clean feeling means that your hair is dried out!
    I use Pantene's Curly Hair series "Moisture Renewal", but you probably have one already that works well for you.
    full lace wigs

    hair extensions Donors must be in good health, at
    least 110 pounds, and have good veins in order to donate.
    My dad goes into the city every other Sunday morning to give his platelet
    donation until he hits his 24 donations for a given year.

    He enjoys chit chatting with the donation center
    employees and watching DVDs while he is there. hair extensions

    wigs online Every generation has introduced or been victim of some ridiculous styles of clothing, garments that people love to hate.

    Modern complaints include falling down pants as well as
    the absurd notion of purchasing jeans that have been professionally ruined with tears and bleach stains.

    Underwear worn as outer wear, a look that's been around
    since the 1980s is another concept that seems foolish..
    wigs online

    human hair wigs How To: The Retro Faux Page BoyWhat was the most popular hairstyle in the 50s?
    Definitely the Page Boy! A lot of women had
    their hair in shorter lengths, such as shoulder length,
    so that they were able to curl their hair under and into the popular
    page boy hairstyle. Today, Rockabilly pin up ladies all over are trying to achieve the page boy hairstyle
    once again. Keep in mind that for a faux page boy hairstyle,
    the hair will need to be long enough to roll under one
    and a half times. human hair wigs

    human hair wigs Something I used to do (and occasionally still do) is print out the game notes
    before the game, and just have them in front of me while I watch.
    Before the game, I maybe skim the team headlines and a couple of
    the headlines for the starting pitcher. As the home team comes up to bat, I read a blurb or
    two about the current batter.. human hair wigs

    clip in extensions I was never in favor of MA having this power, but overall
    I don think it been massively abused, most MA use it responsibly or don use it at all.
    Even in this case mofakin said on nexus that fireundubh block would only have been temporary.
    If he was being honest about that then this was all for nothing..
    clip in extensions

    costume wigs By the time she was 14, she was very
    mature and overly responsible.Fast forward
    15 years and the kid is an RN, working ICU in a level 1 trauma unit.
    Few years later, she a flight nurse in med evac.It only the
    last few years that she become fiercely independent. That took some parenting skills,
    as well. costume wigs

    full lace wigs I wouldn have had a clue where to look back then if it hadn been for you.
    She had 3 years of OT and all the hour long meltdowns, the over reactions ect,
    are mostly a thing of the past. She has been seeing a behaviorist
    for over a year because kids who have sensory issues very often have social defecits and my daughter
    did, she is the sweetest kid out, but social interactions
    made no sense to her and she would confuse the other kids.
    full lace wigs

    wigs for women That job has been quite heavily wrecked.

    In a similar vein the job of programmer may be
    made so that most people are capable of building their own apps,
    or administrating their own database. And at that point you suddenly have way way
    more programmers than you have programming jobs which means the job itself crashes..
    wigs for women

    costume wigs I hate this show. With a passion. I purposely DON watch it because I feel like its the exploitation of innocent children. Over the years
    the village Doctor mentality came and went, until one day the GPs
    suddenly decided that it was a business to be a local Doctor
    and as for the patients, well they came second.
    But I hadn't realised how bad the NHS had become
    until this week. Even a few years ago if you phoned the Doctor and said can you come out to see us they would just get in their car and be up
    at the house within 20 minutes or so. costume wigs

    hair extensions Legal fees. Embarrassing statements
    and events. Nasty little details concerning
    all manner of things, from the relatively mundane to the
    potentially important, becoming public. Since I bought my cap sleeve and rest of the
    skirt fabric first I was able to color key my
    floral pattern computer drawings so that when the printed spoonflower fabric came, it would match all my other existing fabrics as well as possible.
    I studied multiple screenshots and worked out what I
    thought was the repeating pattern of the embroidery. This
    took several days hair extensions.

  • Yonsoymn Feb 23, 2020, 11:11 PM (5 days ago)

    <a href="http://tadalafil150.com/">canadian pharmacy online prescription tadalafil</a> <a href="http://seroquel1.com/">buy seroquel</a> <a href="http://atenolol911.com/">atenolol tablets 25mg online</a> <a href="http://sildenafil10.com/">sildenafil 50 mg</a> <a href="http://propecia100.com/">propecia cream</a> <a href="http://lisinopril100.com/">lisinopril 10 mg tablet</a> <a href="http://motilium2019.com/">motilium price</a> <a href="http://buspar1.com/">555 buspar</a> <a href="http://prednisone100.com/">prednisone over the counter canada</a> <a href="http://tretinoin24.com/">tretinoin cream uk prescription</a>

  • Zaksoymn Feb 23, 2020, 4:51 PM (5 days ago)

    <a href="https://seroquel1.com/">buy generic seroquel</a> <a href="https://propecia100.com/">generic propecia</a>

  • Paulsoymn Feb 23, 2020, 8:49 AM (5 days ago)

    [url=https://acyclovirzov.com/]aciclovir tablets[/url] [url=https://suhagra2020.com/]buy suhagra 50 mg[/url] [url=https://albendazoleotc.com/]albendazole otc usa[/url] [url=https://albuterolsale.com/]albuterol inhaler[/url] [url=https://cipro360.com/]cipro tablet price[/url]

  • Eyesoymn Feb 20, 2020, 7:13 AM (9 days ago)

    [url=http://celebrexcap.com/]price of celebrex 200 mg in south africa[/url] [url=http://clomidpill.com/]clomid for men[/url] [url=http://retinaotc.com/]robaxin 750 mg[/url] [url=http://stratteramed.com/]strattera online europe[/url] [url=http://advair1.com/]over the counter advair diskus[/url] [url=http://zoloftgen.com/]zoloft 50[/url] [url=http://atorvastatinlipitor.com/]lipitor generic[/url] [url=http://synthroid20.com/]over the counter synthroid[/url] [url=http://suhagra2020.com/]suhagra 100mg best price[/url] [url=http://tadalafil247.com/]where to buy tadalafil[/url] [url=http://metformingluc.com/]metformin 500[/url] [url=http://acyclovirzov.com/]acyclovir 400 mg[/url] [url=http://lisinopriltab.com/]buy lisinopril[/url] [url=http://ventolinalb.com/]ventolin inhaler[/url] [url=http://albendazoleotc.com/]buy albendazole tablets[/url] [url=http://ataraxgen.com/]generic atarax[/url] [url=http://wellbutrinlab.com/]wellbutrin 225 mg[/url] [url=http://cipro360.com/]cipro 250 mg[/url] [url=http://indocinmed.com/]indocin medication[/url] [url=http://aqutaneiso.com/]buy accutane[/url]

  • Teosoymn Feb 20, 2020, 2:24 AM (9 days ago)

    [url=http://cialis500.com/]otc cialis in us[/url]

  • Miasoymn Feb 19, 2020, 7:13 AM (10 days ago)

    [url=https://clomidpill.com/]clomid 50mg uk[/url] [url=https://amoxicillinbio.com/]500 mg amoxicillin[/url] [url=https://tadalafil247.com/]tadalafil 5mg online pharmacy[/url] [url=https://albendazoleotc.com/]albendazole cost australia[/url] [url=https://suhagra2020.com/]suhagra 100[/url]

Who better to advise other than McRae Property Commercial.

Minimise the risk and take advantage of our expertise. Get in touch with us to discuss your next project today.

Contact Us
McRae Property Residential

Looking for residential property?