Commercial Lease Checklist WA

A proposed lease should be reviewed as a complete business commitment, not simply as a monthly rent figure. A tenant should understand the premises, permitted use, term, options, rent reviews, outgoings, fit-out obligations, security, assignment rights, default provisions and exit risks before signing or taking possession.

Key points

Confirm whether the premises and proposed use are covered by WA retail-shop legislation.
Compare the offer, disclosure documents, lease, plans and every representation made during negotiations.
Calculate total occupancy cost, not rent alone.
Check option deadlines, make-good obligations and restrictions on assignment or sale of the business.
Understand every personal guarantee and bank guarantee before committing.
Obtain advice before signing, paying rent or taking possession; a lease relationship can arise even when the formal document is unsigned.

Is it a retail shop lease or another commercial lease?

This distinction matters because the Commercial Tenancy (Retail Shops) Agreements Act 1985 (WA) regulates qualifying retail shop leases. The WA Government tenant guide explains that coverage depends on matters including the premises, floor area and nature of the business. Some leases outside a shopping centre can still be covered, while not every business lease is.

Do not assume the heading on the document answers the question. The actual premises and use must be considered.

What premises are you receiving?

Check the street address, lot or tenancy number, floor plan, area, parking, storage and access. Identify shared areas and any equipment included. If signage, outdoor seating, loading access or exclusive parking matters to the business, ensure the legal right appears in the documents.

Confirm who is responsible for structural work, services, repairs and compliance. A verbal promise that the landlord will complete work may be difficult to enforce if the final lease says something different.

What is the real occupancy cost?

Model the cost across the entire initial term and any proposed option. Consider:

base rent and GST;
rent reviews and their timing;
operating expenses or outgoings;
utilities, cleaning, waste and security;
insurance obligations;
fit-out and refurbishment;
legal, registration or management costs permitted by the agreement;
bank-guarantee fees and cash or property tied up as security; and
make-good costs when the lease ends.

A low opening rent can be misleading if reviews, outgoings or compulsory works are substantial.

Does the permitted use fit the business?

The permitted-use clause should cover what the tenant actually plans to do, including likely product or service changes. Check planning approvals, licences and building suitability separately. A landlord’s consent does not necessarily mean a government authority will approve the use.

If exclusivity is commercially important, such as preventing a competing operator in the same centre, the protection should be express and workable.

Are the term and option commercially useful?

Check the commencement date, expiry date and every option. Option clauses commonly require strict notice within a defined window and may depend on the tenant not being in breach. Diary the earliest and latest exercise dates at the start of the lease.

An option has limited value if rent for the option period can change unpredictably, the business is likely to outgrow the premises, or assignment restrictions make the business hard to sell.

What security is required?

Security may include a cash bond, bank guarantee, director’s guarantee or a combination. Record:

the secured amount;
whether it changes when rent increases;
wording and expiry requirements;
when the landlord can call on it;
replacement obligations;
the bank’s fees and collateral requirements; and
the conditions and timeframe for return after the lease ends.

Read our detailed guide: What is a bank guarantee?

Can you assign the lease or sell the business?

Review the consent process, information the landlord may require, costs, conditions and whether the outgoing tenant or guarantors remain liable. A business sale can be delayed or lost if the lease cannot be transferred on workable terms.

Also check subleasing, change-of-control and ownership provisions. A company share sale may trigger consent even though the named tenant does not change.

What happens on default or at the end?

Understand interest, recovery costs, termination rights, re-entry and obligations after a breach. Review make-good requirements carefully: removal of fit-out, repainting, repairs and reinstatement can be expensive.

Hypothetical example

A tenant negotiates five years at an attractive rent, but the lease requires a full refurbishment in year four, an unconditional bank guarantee and reinstatement to a bare shell on expiry. Modelling those obligations before signing may change the commercial decision or the terms the tenant seeks to negotiate.

Documents to prepare for review

Offer to lease or heads of agreement
Draft lease and disclosure statement
Plans, specifications and fit-out documents
Relevant emails and representations
Company or trust details for the proposed tenant
Budget and intended use
Existing lease if renewing, assigning or relocating
Bank-guarantee or personal-guarantee requirements

When should you obtain advice?

Ideally, before signing an offer, paying non-refundable money, commencing fit-out, taking possession or paying rent. Early advice allows the legal terms to be considered while there may still be room to negotiate.

Speak with a commercial lease lawyer

Legal Care Australia assists businesses with commercial and retail leases, assignments, options and related guarantees. Book a business consultation in English or Vietnamese, subject to conflict clearance and confirmation that we can assist.

Sources checked

First drafted: 21 July 2026. This guide provides general information, not legal advice. Requirements and commercial documents vary. Obtain advice about your circumstances before acting.

What Should a Tenant Check Before Signing a Commercial Lease in WA?