Responsibility for repairs and maintenance should be clearly outlined in your lease. Try to negotiate for the landlord to be responsible for the structure of the building and major capital items (i.e. roof, walls, air-conditioner, exterior fittings such as gutters and downpipes, plant and equipment that are their property, etc).

As a tenant you may be responsible for the repairs and maintenance of the internal surfaces such as floor coverings, doors and windows and any equipment and fixtures provided by the landlord for your use.

Equipment such as air-conditioners and fire sprinklers should be negotiated to be replaced by the landlord when their useful life span is over, but the day-to-day maintenance is your responsibility.

You may need to assign the lease (the lease is taken over by another person) if you decide to sell your business or can no longer keep operating. You will need the landlord’s permission to do this, so make sure your lease states that they cannot unreasonably withhold their consent.

Reasonable grounds for refusing the assignment may include the prospective new tenant having a poor credit rating, them being unlikely to be able to conduct the business successfully or intending to use the premises for a purpose other than the use permitted by the lease.

If you sub-lease part or all of your premises, you are still liable for the lease. This may mean that you will need to pay rent if your incoming tenant fails to pay. It is important to undertake a credit check and ensure that the incoming tenant is able to meet the lease requirements.

If you are assigning a lease or sub-leasing you may be required to pay the landlord’s reasonable legal costs and other associated expenses.

You will be in default of your lease if you fail to pay your rent on time. This will allow the landlord to take action to recover the rent. In many leases the landlord will also have the right to enter the premises and lock you out without notice.

The landlord can claim the loss of rent up to the end of the lease period and costs associated with reinstating and re-letting the premises. If the premises are re-let at a lower rent the landlord can claim for this plus any other loss and legal costs associated with your defaulting.

When negotiating your lease make sure the default clauses specify that you must be given written notice of any default, and that you are given sufficient time (at least 14 days) to rectify the default before any action is taken against you.

You can also breach your lease (breaking part of the agreement) if you do not undertake certain requirements, such as failing to repair or maintain the premises. Once again, you should negotiate in your lease to have written notice and sufficient time to rectify any breaches before any action is taken against you.

A redevelopment clause may allow the landlord to terminate a lease early so they can carry out major works to renovate or redevelop the premises. In these circumstances you could find yourself without premises or relocated to alternative premises. This could severely affect your business.

If possible, you should try to negotiate to have the redevelopment and relocation clauses removed from the lease. If you can’t, make sure the lease provides compensation for loss of trade or goodwill associated with relocating your business, along with payment for relocation and other costs and losses.

You should also consider negotiating a reduction in rent if appropriate. Generally the redevelopment clause should provide sufficient compensation so that you are in substantially the same position as if the redevelopment did not occur.