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Is Your Temporary Lease Ending?

7 February 2018 | Philip Sewell
Godfreys Law Christchurch Temporary Lease Employment Commercial Law

As new building projects are completed around Christchurch and the CBD, more businesses are moving into their rebuilt or renovated premises. While moving into the next phase is exciting, it’s important to think about what has to happen at the end of the lease.

Godfreys Law Christchurch Temporary Lease Employment Commercial Law

Christchurch Is Rebuilding

If you've made changes to the premises, sometimes the landlord can require you to put things back as they were when you first moved in.Restoring commercial premises back to the way they were is called reinstatement. 

For example, have you installed partitions to create meetings rooms or offices? Perhaps you added a customer service counter, plus the wiring needed to power the till and EFTPOS machines? Whatever work you’ve had done, it’s generally expected you will customise temporary spaces to make them fit for purpose

What's In Your Lease?

Most business owners have a working knowledge of what the lease provisions contain, especially when it comes to what you are able to do in that space, what it costs, and how long you're committed for. In the excitement of signing a new lease and moving into a new commercial workspace, many business owners forget what will happen when the lease runs out.

The reinstatement obligations can be a nasty surprise for many businesses – but they don’t have to be. The time for sorting this out is at the start of the lease, not the end. You want to make sure your obligations are clear and in writing before you sign the dotted line.

While letting agents are very good at getting people into premises, it’s rare for them to tell tenants up-front about reinstatement obligations. Unsurprisingly, it is not a popular topic to talk about prior to signing.

Sensible Legal Advice

The team at Godfreys Law can negotiate with the building owner to remove any end-of-tenancy surprises. As well as everything else you need to consider before signing a new lease, our commercial legal team can help you think about how you’ll exit your tenancy, and on what terms.

If you’re unsure about the terms of your commercial lease, come and have a chat with our commercial team at Godfreys Law. We can cut through the complex contract jargon so you understand your obligations. We'll give you advice around signing, and can even negotiate on your behalf.

For advice and options around reinstatement obligations and commercial leases, contact Godfreys Law on 03 366 7469.

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Article by:

Philip Sewell


Client focused solutions and speed of delivery are important features of Philip's practice. He has been in the law for over 20 years - some would say this is too long, but he considers that it gives him a breadth of experience which is more important than technical knowledge alone.

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