PA Law Legal Video Guides · Commercial leasing · South Australia
By Manal Amro, Principal Solicitor, PA Law Pty Ltd
Updated:
Watch: commercial lease SA checklist
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Manal Amro explains five questions to ask before committing to business premises. Use this commercial lease SA guide to prepare your questions, then obtain advice on the actual documents before signing.
5 essential checks for your commercial lease in SA
1. What are you actually paying?
Look beyond the advertised rent. Check GST, outgoings, rent reviews, security and any other payments identified in the lease. Ask for a written breakdown so you can compare the first year with later years.
For a tenant, this helps test affordability. For a landlord, it helps make the proposed allocation clear. Where the Retail and Commercial Leases Act 1995 applies, statutory restrictions may affect what can be recovered; a clause alone does not make every charge enforceable.
2. Who handles repairs and maintenance?
Check air-conditioning, plumbing, electrical services, structural items and equipment. Separate routine servicing, repair of damage and replacement of a worn-out system. Responsibilities depend on the documents and applicable law, so avoid assumptions based on residential renting experience.
Practical step: prepare a condition record with dated photographs and a list of existing defects. Ask who approves work, who organises the contractor and who pays. Record any negotiated change in the lease. The Small Business Commission’s leasing guidance explains why this allocation needs attention.
3. Are you giving a personal guarantee?
If the tenant is a company, read every guarantee and indemnity separately. Signing personally can expose you to liability beyond the company. Identify whose obligations are covered, whether liability is capped, how long it continues and what is required for release.
Ask how the wording deals with renewals, variations or a future business sale. Do not rely on an informal assurance that the signature is “just a formality”. See our personal guarantee and director resignation video for a related issue.
4. How do you exercise the renewal option?
An option generally requires action. Read the notice window, permitted method of service, recipient and any conditions. Check how rent will be determined for the further term as well.
Practical step: put the relevant dates in your calendar when signing, with earlier reminders to obtain advice and make a decision. Keep the notice and evidence of delivery together. If a deadline is in doubt, obtain advice promptly. The Commission’s explanation of lease terms highlights the conditions and timeframes attached to options.
5. What happens when you leave?
Review the make-good clause before investing in the fit-out. Depending on the agreement, leaving may involve removing signage or fixtures, repairing damage, cleaning or reinstating parts of the premises. Check the required condition and timing.
Early departure raises separate questions about termination, assignment or an agreed surrender. Plan the handover, inspection and return of security, and clarify any continuing obligations. Read our commercial lease make-good video guide for more detail.
For a detailed written checklist, read our article: Commercial Lease in SA: 5 Essential Checks Before You Sign. It explains the legal framework, practical negotiation questions and end-of-lease issues.
A practical checklist before your lease review
| Bring or request | Question to resolve |
|---|---|
| Draft lease, schedules and special conditions | Do the documents reflect the agreement discussed? |
| Disclosure statement and cost estimates | What is the full commitment beyond rent? |
| Premises plan, photos and equipment details | What is included and what condition is it in? |
| Guarantee and security documents | Who takes the risk, and how does it end? |
| Offer, correspondence and proposed dates | What has already been agreed or signed? |
Keep a numbered list of unclear clauses and the outcome you want for each one. Before signing, compare the final version with the changes agreed during negotiations. Also check permitted use, approvals, access and whether the premises suit the intended business.
For leases covered by the Act, pre-contract disclosure and other statutory requirements need attention. The Commission’s before-signing guidance identifies the lease, disclosure statement and leasing guide as key documents. If an offer is already on the table, read our offer-to-lease video before treating it as merely preliminary.
Transcript excerpt
Lightly edited for readability.
00:00–00:10: Are you about to sign a commercial lease in SA? Whether you’re a landlord or a tenant, here are five things you should consider before signing.
00:10–00:23: Number one, what are you actually paying? Don’t just look at the rent. Check the outgoings, GST, rent increases and any other cost you’re responsible for under the lease.
00:23–00:30: Number two, repairs and maintenance. If the air conditioning breaks, the plumbing fails, or major repairs are needed, who pays? Make sure the lease is clear.
00:30–00:40: Number three, personal guarantees. If you’re signing a guarantee for your company, understand what you’re agreeing to. Your liability may not necessarily be limited to the company.
00:40–00:56: Number four, options to renew. An option doesn’t usually exercise itself. Know the deadline and the procedure because missing it can have serious consequences.
00:56: And number five, what happens when you leave.
Frequently asked questions
Who pays for air-conditioning repairs in a commercial lease?
The lease, equipment ownership, cause of the problem and applicable law need to be checked. Distinguish routine servicing from repairs and replacement, and record the agreed responsibilities before signing.
Am I personally liable if my company signs the lease?
A personal guarantee can create obligations for you as an individual even when the company is the tenant. Check the guarantee’s scope, any cap, duration, indemnity and release provisions before signing.
Does an option to renew happen automatically?
Generally, no. Follow the option clause’s notice deadline, delivery method and conditions. Keep evidence of service. If a deadline may have been missed, obtain advice promptly about the particular lease and circumstances.
Can I leave the premises before the lease ends?
Do not assume that moving out ends your obligations. Check any break clause, assignment provisions and negotiated surrender options. Document any agreed release, including the position of guarantors.
Does every commercial lease in SA have the same rules?
No. Whether the Retail and Commercial Leases Act 1995 applies depends on the premises, transaction and relevant exclusions or exemptions. The lease’s label alone does not settle the question.
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General information only. This video and written guide are not legal advice about a particular lease. Rights and obligations depend on the documents, circumstances and applicable law. Obtain advice before signing or acting on an assumption about renewal, repairs or termination.