Commercial Leasing Services

If you’re looking to lease a space for your business, you might be wondering how short of a lease you can agree to — especially if you need flexibility.

In South Australia, most business leases fall under the Retail and Commercial Leases Act 1995, which generally requires a minimum five-year lease term. This applies to business premises where goods or services are sold to the public, including shops, cafés, offices, and service-based businesses—as long as the annual rent does not exceed $400,000 (excluding GST).

However, there are ways to negotiate a shorter lease, such as:

• Signing a short fixed-term lease of six months or less, which is not subject to the five-year rule.
• Including a Certified Exclusionary Clause, which allows for a shorter lease—but requires a formal certificate confirming that the tenant understands the legal implications.
• If the tenant has already occupied the premises for at least five years, they may not be required to commit to another five-year term.

When leasing a commercial property, having the right documents in place is essential to ensure clarity, legal protection, and compliance with South Australian leasing laws.

The main documents you should expect to receive and review before signing include:

• Draft or Sample Lease – The landlord (lessor) must provide a draft or sample lease as soon as negotiations begin. This document outlines the key terms and conditions under which the premises will be leased.
• Disclosure Statement – This is a legally required document that provides essential lease details, such as rent, rent reviews, lease term, renewal options, outgoings, permitted use, and tenancy mix. It ensures transparency so that tenants fully understand their financial and legal obligations before committing to the lease.
• Retail & Commercial Lease Guide – If the lease is covered by the Retail and Commercial Leases Act 1995 (SA), the landlord must provide the most recent version of this guide along with the draft lease. This document explains key rights and obligations under the Act.

In some cases, a landlord may ask you to sign an Offer to Lease or an Agreement to Lease before the formal lease is prepared. While these documents may seem like simple agreements, they can create a legally binding obligation to enter into a formal lease later. It’s crucial to seek legal advice before signing any pre-lease documents to avoid unintended commitments.

Lease registration isn’t mandatory, but in many cases, it’s a smart move. It provides extra legal protection, ensuring that if the property is sold, the new owner must honour your lease—helping you avoid unexpected risks.

In South Australia, registering a lease is highly recommended if:

• Your lease exceeds one year, as unregistered leases may be harder to enforce if disputes arise.
• You want to protect your leasehold interest in case the property is sold.
• The lease agreement includes renewal options or a long-term commitment, making registration a safeguard for stability.

Before signing a lease, it’s essential to understand who is responsible for repairs and maintenance, as unclear terms can lead to unexpected costs and disputes later.

Tenant Responsibilities:

In most commercial leases, tenants are responsible for:

• Routine maintenance and upkeep, such as cleaning, minor repairs, and general wear and tear.
• Replacing consumables, such as light bulbs and batteries in smoke alarms.
• Repairing any damage caused by the tenant, their staff, or customers.
• Reporting any repair or maintenance issues to the landlord in a timely manner.

Landlord Responsibilities:

Landlords are typically responsible for:

• Structural repairs, including the foundation, walls, and roof.
• Ensuring essential services (e.g., water, electricity, heating/cooling systems) are in working order at the start of the lease.
• Repairing and maintaining common areas if the premises are part of a larger complex.
• Addressing pre-existing issues or defects that existed before the tenant moved in.

While these are the usual divisions of responsibility, commercial leases do not automatically require the landlord to maintain or repair the premises.

• If the lease does not explicitly require the landlord to fix something, tenants should not assume they will.
• Some leases shift additional responsibilities to the tenant, including maintenance of air conditioning, plumbing, and other non-structural elements—so it’s crucial to check the lease terms.
• The Disclosure Statement should be carefully reviewed before signing, as it outlines maintenance obligations and any capital expenditure tenants may be required to cover.

Since repair responsibilities vary between leases, it’s crucial to fully understand your obligations before signing to avoid unexpected liabilities. If you're unsure about your lease terms or need guidance on negotiating repair responsibilities, our experienced commercial leasing lawyers are here to help. Get in touch today to ensure your lease protects your interests and prevents costly surprises.