Apart from the standard clauses and provisions included in most leases the parties should also consider other issues that may be important to them. These may include:

  • Limiting Guarantees on the Assignment of the Lease
  • Including a First Right of Refusal to allow the tenant to purchase the premises if the landlord wishes to sell
  • Upfront incentives that may be part of the negotiation process. Such incentives include things such as rent-free periods, fit-out contributions, or a combination of the two.
  • Specific re-instatement clauses which would apply at the end of the tenancy, so that all the parties are aware of the expectations regarding the state of the premises at the end of the lease term.

Also, regardless of what additional clauses you may wish to include in the lease document during the negotiation stage, it is also important to get advice on the taxation implications on payments that will be made at the beginning of the lease period. The actual nature of incentives in the lease, and how and when they are paid, will have a bearing on how they need to be treated for tax purposes by both the landlord and the tenant.