Business lease short version for Newzealand

When to use: 

This document is suitable for landlords or tenants. It is usually the landlord who provides the lease; however, tenants gain an advantage by being able to edit in their favour.

This lease agreement has been drafted primarily to protect the interest of the landlord.  It is for a tenant to challenge and further negotiate those paragraphs which may not suit his circumstances. 

These leases are suitable for:

• a business letting of offices, workshop, factory, shop and others
• premises which are part of a larger set of buildings, e.g.
          a shop
       a workshop

Which to use?

• Lease NZ-PR004 is designed for: any business letting for a short term where the strength of protection required by the landlord is not a principal consideration and a short and simple lease is all that is required.  There is no break clause in this document, nor provision for a guarantor and no rent review.  Some other provisions have been reduced in effect.  If you are dealing at arms length with an unknown person, we recommend that you use document NZ-PR001 rather than this one.
• Lease NZ-PR005 is for: premises which include a residential element, designed for the business tenant to occupy as his home.  The most common application is “the flat over the shop” but there are many others.

Neither lease is suitable for:

• a residential letting alone;
• premises that are part of a large, multi-let building;

These leases include the following provisions:

• Guarantor:essential if tenant is a limited company;
• Rent: paid monthly in advance, but can be changed to suit you;
• Payment provisions: all payments the tenant might have to make;
• Use allowed: including list of prohibited activities;
• Break clause: that is, premature termination on tenant’s notice;
• Landlord’s access: to view or show prospective lenders or buyers;
• Rent review: reviewed 3 yearly, upwards only;
• Repairs: tenant must maintain in same condition (not better);
• Decoration:tenant to decorate in third year and at end of lease period;
• Insurance: landlord insures, tenant reimburses premium as insurance rent;
• Transfer of lease: tenant can transfer all premises with consent; no transfer of part only;
• Sub letting forbidden;
• Termination: what happens;
• and many other usual legal clauses to protect your interest.