Lease a business premises

Once you've decided to lease a premises, use our checklist on retail lease agreements to ensure you know the right questions to ask before you sign.

Good business practice when leasing your retail or commercial space includes:

• using the Victorian Small Business Commission's (VSBC) website as a resource
• contacting your industry association for any lease negotiation assistance
• understanding the obligations of you and the landlord when you sign a lease
• knowing the lease requirements, commercial or retail, including the Retail Leases Act 2003
• consulting an adviser for any contract and legal questions you may have
• investigating zoning, permits and building requirements for your premises
• planning financial arrangements, payments, taxes and cash-flow.

How can the VSBC help with my lease?

Seek advice to guide you.

A good starting point is visiting the Victorian Small Business Commission website that offers support for both tenants and landlords providing information on a whole range of subjects, including:

• land tax
• assigning or ending a lease
• compensation
• maintenance and repairs
• outgoings
• renewals
• security deposits.

In accordance with section 21 of the Retail Leases Act 2003, you're entitled to a lease for a term of at least five (5) years. This includes the initial term, and any further term or terms provided for by any options for renewal.

Apply for a waiver to a five year lease.

What the landlord and tenant have to do

The tenant and landlord must follow certain steps for a transfer of the lease.

For a new retail lease, the landlord is legally required to give the tenant:

• a written lease with matters agreed to and signed off by both parties
• a copy of the proposed lease as soon as the lease negotiations start
• a disclosure statement
• the VSBC Information Brochure as soon as the lease negotiations start.

For retail leases, the landlord must detail the outgoings the tenant has to pay.

VSBC has a copy of the landlord's disclosure statement covering the types of outgoings the tenant may have to pay.

The Retail Leases Act 2003 covers the obligations for both the landlord and tenant. For example, the landlord must repair and maintain the premises in the same condition as at the start of the tenancy.

Fixing a lease dispute

1. Try to fix it yourself

Conflict and disputes between landlords and tenants are a fact of life. If you find yourself in a dispute, your first step should be to try to resolve the issue.

Speak directly and politely with the other party, and try to negotiate so both parties will be satisfied with the outcome. If possible, aim for a win/win rather than a win/lose outcome.

Visit our pages on resolving retail lease disputes for more information.

2. Contact the VSBC

If your first step fails, you should contact the VSBC which provides a speedy and low cost dispute resolution process.

The VSBC aims to help you resolve a dispute before it becomes legal action by organising mediation sessions between tenants and landlords with independent mediators.

3. Contact the Victorian Civil and Administrative Tribunal

For a matter to proceed to the Victorian Civil and Administrative Tribunal (VCAT), the VSBC must issue a certificate stating that mediation was tried and failed.

VCAT will conduct a formal hearing and make a determination. It can order a party who refuses to take part in VSBC mediation to pay the costs of the other party.