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Entering into a lease — what a landlord should consider

Authored by Catherine Hallgath, Partner, Mills Oakley Lawyers, Brian Ralston, Barrister-at-Law and Tim Tierney, Principal, and Sebastian Thomas-Wilson, Principal, Tierney Law (Tas). Updated by the LexisNexis Legal Writer team.

Understanding the considerations and motivations of a landlord can assist legal practitioners in determining how to advise a landlord before the landlord enters into a lease with a tenant.

Protection of the landlord’s asset

A landlord owns the building in which the leased premises are contained and, for that reason, a landlord’s primary consideration is to protect that investment. Accordingly, a landlord may:

  • require a tenant to only use contractors approved by the landlord to carry out work to the premises;

  • reserve the right to carry out the work on the tenant’s behalf and at the tenant's cost, if the work affects sensitive building services or the structure of the building; or

  • require a tenant to obtain the landlord's approval before carrying out any works to the premises.

No uncapped obligation to spend money/carry out work

A landlord will not wish to be burdened with an unlimited obligation to spend money or to carry out work on the premises. A landlord will want to avoid any dispute arising between the parties regarding:

  • if particular work is required to be done; or

  • if particular work has been done, if the work has been carried out appropriately and satisfactorily.

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