Commercial & Retail Leases

The Power of the Parties

The relevant ‘power’ of the parties in a commercial lease should be considered when entering into such an arrangement. This is particularly applicable to small business owners who own and operate their businesses.

Landlords usually have property managers to manage their property leasing business. It relieves them of the time they need to commit to operate their ‘business of leasing’. Landlords also usually have financial capacity to engage legal professions to deal with police matters. In addition, tenants are required to pay rent even when disputes exist with landlords.

Small, owner-operated businesses, on the other hand, are usually not in the same league when it comes to legal and financial power. Additionally, owner-operators are fully engaged in the daily operations of their businesses. Time away from business activities often has a direct impact on revenues. Spare time is not something most small business owners enjoy.

Granted, the Law may govern Retail Shop Leases. However, the reality is that the relative time and financial ‘power of the parties’ is at the core of their relationships. Small business owners who are entering into lease agreements with landlords would be wise to bear in mind that the landlord is likely to have a particular ‘power’ advantage in any lease arrangement they enter into.

If you need more information or help, please talk to me

Graham Long

0428-649-791

Kevin Lovewell

M: 0401-308-385
E: Click here to contact Kevin Lovewell
Member & Registered Business Valuer
Australian Institute of Business Brokers

Graham Long

M: 0428-649-791
E: Click here to contact Graham Long
Member & Registered Business Valuer
Australian Institute of Business Brokers

Kevin Lovewell

M: 0401-308-385
E: Click here to contact Kevin Lovewell
Member & Registered Business Valuer
Australian Institute of Business Brokers
What others say about Kevin Lovewell

Graham Long

M: 0428-649-791
E: Click here to contact Graham Long
Member & Registered Business Valuer
Australian Institute of Business Brokers
What others say about Graham Long

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