Leasing a Business Premises – What You Need to Consider

Table of Contents

Share at:

When looking for a rental business premises to suit your restaurant or café, there are many factors to consider and legal obligations you need to meet in order to maximise business efficiency, and to be compliant with the law.

If you are in the market for a business premises, or have recently just entered into a lease agreement, it’s always best to speak with a property lawyer. A property lawyer will provide legal guidance about your rights and obligations under the agreement. This could save your business from any costly misunderstandings.

Leasing a Business Premises – What You Need to Consider

The Lease Agreement

The lease agreement between you and your landlord is the most important document when leasing a business premises for your restaurant or cafe. It is wise to fully understand the conditions you are entering into before signing. This is because your agreement may run for many years, depending on the type of lease. Things you will need to consider in relation to the lease agreement are:

  • The cost of rent and frequency of payments;
  • Your rights and obligations under your state or territory’s respective retail lease legislation;
  • Who your landlord is;
  • The type of lease, for example, whether it is a fixed term lease or a periodic tenancy.

Zoning Laws

When choosing a premises that best suits your business needs, it is essential to consider the local zoning laws to determine any current restrictions and requirements concerning the property.

The best place to start is by talking to your local council to determine what is needed from you, such as development approval if your business is a different Use category than the former tenant, as zoning laws differ per council. Through your local council you will be able to find out what applications you will need to fill out.

If the premises is heritage listed, you may need to seek additional approval from the local council and your state’s heritage council.

Building Permits

In addition to zoning laws, your local council will be able to assist you in applying for the relevant building permits needed to develop the premises for your restaurant or cafe. Things that generally require a permit include:

  • Setting up the business;
  • Redeveloping the store front;
  • Attaching signage to the building;
  • Developing the internal fit-out of the building; and
  • Extending out to a public space, like seating on the footpath.

When leasing a premises for your business it is important to consult with a property lawyer in order to know your rights and responsibilities when entering into a lease agreement and if conflict arises between you and the landlord.

Don’t know where to start? Contact a LawPath consultant on 1800 LAWPATH to learn more about customising legal documents, obtaining a fixed-fee quote from our network of 600+ expert lawyers or to get answers to your legal questions.

Share at:

Simplify creating legal documents today

Browse through Lawpath's AI tools which can be used to draft, review and refine legal documents today!

Related Articles

Choosing the Right Business Structure in Australia: Taxation Explained

Choosing the right business structure involves understanding their tax implications. Let us walk you through the process in our detailed guide.

Common Tax Deductions for Businesses in 2026: An Overview

This article will ensure you know the key tax deductions for your business in 2025 and ensure you know how to navigate them.

Do I Have to Pay Tax on Distributions From an Irrevocable Trust?

A trust is a relationship where a trustee holds property for the benefit of another. Find out how tax applies to an irrevocable trust here.

How to Apply for a Tax File Number (TFN) Online (2026 Update)

Your Tax File Number (TFN) is an allocated number which you will carry with you throughout your life. Read about how to apply for it online here.

How to Lodge Your Individual Tax Return (2026 Update)

Not sure how to get your taxes sorted? Read this article for everything you need to know about filing your individual tax return.

Inheritance and Estate Taxes in Australia: An Explainer

Taxes are a part of everyday life for people living in Australia. Read this article to find out how inheritance and estate taxes work.