What is a renewal of lease and when is it done?

What is a renewal of lease?

Lease renewals are an important part of property management and they should be approached with care and professionalism to ensure the desired outcome is achieved. A lease provides for a certain term of occupancy. If a tenant wishes to ensure they can occupy the premises past the initial term of lease they should negotiate with the landlord to ensure there is an option to renew the lease for a further term or terms. This is often just called an ‘option’ and is documented in the original lease. That option should be clearly indicated in your lease agreement. A Renewal of lease is on the same terms as the original lease expect for such things as rent payable and the further terms. A lease renewal is not a new lease agreement and the terms and conditions of the original agreement still apply.

Your lease agreement should clearly state when and how you are able to exercise your right to renew your lease. This is done in writing. That notice must be given within a given time as set out in the lease and if the Retail Leases Act 2003 applies within the time frame stipulated in that Act.

Whether you are landlord of tenant, we can we can advise you in relation to your rights and obligations with respect to your lease.

If you would like assistance, please contact Wollerman Shacklock Lawyers on 9707 1155 or admin@wslegal.com.au.