For many business owners, the lease is simply a piece of paperwork to secure their space. But hidden within the fine print are obligations that can cost hundreds of thousands of dollars over the life of the agreement. Understanding these pitfalls and how to avoid them is essential.
1. Rent Reviews That Hurt Profitability
Landlords typically include clauses that increase rent annually, often tied to CPI or fixed percentages. Without negotiation, these compounding increases eat into margins year after year. A smart negotiator will benchmark against the market and secure more favourable review terms.
2. Missed Incentives
Fit-out contributions, rent-free periods and marketing support are common, but only if you ask. Many tenants never receive these benefits simply because they don’t know what’s possible.
3. Make-Good Clauses
At the end of the lease, tenants may be required to return the premises to its original condition. This can mean stripping fit-outs, repainting, and other costly works, often a nasty surprise if not negotiated upfront.
4. Lack of Flexibility
A lease that ties you down for too long, without break clauses or options, limits your ability to adapt to market changes.
Conclusion:
A lease isn’t just a formality; it’s a strategic tool. At Dealcommercial, we represent tenants, not landlords, to make sure every lease works in your favour.
