Tenant Leasing FAQs

(NON-Retail Premises)

How is the lease application used?

The application is an information-gathering tool used to…

  1. Present and discuss the details of your application with the landlord
  2. Capture all the required information effectively
  3. Create an Offer to Lease using the information provided which secures the premises (the binding agreement)

Is the Application a binding document?

No, the application is not binding.

Is the Offer to Lease a binding document?

Yes, typically the Offer to Lease, once executed by all parties it is a binding document.

When will I get access to the property?

Prior to getting access to the property, the following must occur. Please note, there will be no exceptions to this:

1. Your Bond/Deposit monies must have been received into our trust account

2. The Solicitors lease must be signed

3. The required insurance policies need to be in place as stipulated in your lease (we required a copy of your certificates of currency)

4. The signatories ID’s have been verified with 100 points of ID (inc company Directors)

Why do you have solicitors prepare another lease if the Offer to Lease is binding?

It is standard industry practice for experienced commercial property solicitors to prepare the final lease agreements for commercial property.

This provides greater protection for the property owner and for the tenant. The scope of a Solicitor’s lease is greater and can address any complex lease terms agreed, but not covered in something like a REIWA document.

We feel much better knowing we’ve done everything we can to ensure your lease is structured correctly. Your security is important to us.

Who pays the solicitor to prepare the lease agreement?

In Western Australia, it’s typical for the tenant to pay for the preparation of commercial lease documents (non-retail)

What type of security does the tenant provide?

Typically tenants are required to provide a Bond, often equivalent to 2 or 3 months gross rent. Other types of security provided include a Bank Guarantee and Director’s Guarantees.

If there is more than one Director do all Directors to sign?

If signing as a corporation, and if there is more than one Director, the Corporations Act 2001  – sect 127 prescribes at least two Directors must sign, unless your company constitution states otherwise.

Who is responsible for paying Outgoings?

The tenant is typically responsible for payment of outgoings including repairs and maintenance of the property during the lease.

The tenant is typically not responsible for capital expenditure

Why do we need to provide a Personal/Directors Guarantee?

Just like a home loan or residential lease, the Guarantors provide the property owner with additional security and peace of mind.

Please see section 30. below, taken from the REIWA Contract To Lease  Commercial / Industrial Premises By Offer And Acceptance (Other Than Retail Premises)


(i) In consideration of the Lessor accepting the Lessee’s offer to lease at the request of the Guarantors, the Guarantors named below (jointly and severally if more than one) unconditionally guarantee the due and punctual payment to the Lessor and performance of the Lessee’s obligations pursuant to this contract and will indemnify the Lessor and keep the Lessor Indemnify in respect of all monies which the Lessee becomes liable to pay to the Lessor and the performance of all terms, covenants, conditions and stipulations by the Lessee pursuant to his contract.

(ii) This guarantee and indemnity would not be affected by;
(a) Any indulgence or concession given by the Lessor to the Lessee or the guarantors;

(b) Any variation of the provisions of this contract;

(c) The death of bankruptcy of the Lessee or the Guarantors;

(d) The Lessee’s ability under this contract becoming invalid, illegal or unenforceable through any act or omission.

If you have further questions about the leasing process please email s&l@perthcommercialproperty.com.au