Your premises significantly affect how a healthcare business operates. Understanding commercial lease terms before signing is important.
Key Lease Terms
Rent and Outgoings
Understand what you are paying for:
- Base rent calculations
- Outgoings and recovery methods
- Rent review mechanisms
- Market rent disputes
Term and Options
Secure your location:
- Initial lease term
- Option periods
- Option exercise requirements
- Assignment and subletting rights
Permitted Use
Ensure your activities are covered:
- Specific healthcare use permissions
- Ancillary services (pathology, pharmacy)
- Hours of operation
- Signage rights
Fitout Considerations
Initial Works
Plan your establishment:
- Landlord contributions
- Approval requirements
- Building code compliance
- Access for works
End of Lease
Understand your obligations:
- Make-good requirements
- Removal of fixtures
- Reinstatement costs
- Negotiating variations
Retail Lease Protections
If the lease is a retail lease under the relevant state or territory Act, additional protections may apply. These commonly include disclosure requirements, limits on certain outgoings, rent-review rules, and dispute-resolution options. Whether a healthcare tenancy is a “retail” lease is a question of the applicable statute and the facts — for example, in South Australia the Retail and Commercial Leases Act 1995 (SA) is the starting point. Confirm the current Act, regulations and rent-threshold in your jurisdiction.
Conclusion
A well-negotiated lease protects your investment and provides security for the business. Obtain legal advice before signing.
Disclaimer: General Information Only. This article provides general information only and is not legal advice. Seek advice about your circumstances before acting.
Disclaimer: General Information Only. This article provides general information only and does not constitute legal or tax advice. For advice specific to your circumstances, please contact Hamilton Bailey.