How to Give Notice of Non-Renewal of A Lease

If you lease your business premises, there’s a good chance you’ll eventually face the decision to stay, renegotiate, or move on. Sometimes the best commercial decision is to leave - whether you’re upsizing, downsizing, going fully remote, or simply finding a better location.

But when you decide to leave, you’ll usually need to give your landlord a notice to not renew your lease (also commonly called a “notice of non-renewal” or “notice not to renew”).

This can feel deceptively simple: “We’re not renewing, thanks.” In practice, the timing, the wording, and your lease terms matter a lot. If you get it wrong, you can end up paying rent for longer than expected, triggering a dispute with your landlord, or losing bargaining power in end-of-lease negotiations.

Below, we’ll walk you through what a notice to not renew a lease usually involves in Australia, what to check in your lease before you send anything, and how to handle the practical steps (like make-good, bond, handover and exits) without unnecessary stress. This guide is general information only and doesn’t take into account your specific circumstances or the state/territory you’re in - if you’re unsure, it’s a good idea to get advice.

What Does “Notice To Not Renew Lease” Actually Mean?

A notice to not renew lease is a written notice you give to your landlord (or managing agent) stating that you do not intend to take up a further lease term when your current lease term ends.

In many cases, it comes up in one of these scenarios:

Your lease has an option to renew (for example, a further 3-year term), but you’re choosing not to exercise that option.
Your lease is expiring and you’re leaving at the end of the term rather than negotiating a new lease.
You’re on a month-to-month/holding over arrangement and want to bring it to an end (this often has different notice rules).

It’s important to be clear on what you’re actually doing: you may be declining an option (where the lease gives you a formal right to extend) or you may be ending an ongoing arrangement (like periodic tenancy/holding over).

Those are legally and practically different, and your notice requirements may differ.

Non-Renewal vs Early Termination

Non-renewal is different from ending the lease early.

Notice to not renew: you’re leaving at the natural end date of the lease term (or choosing not to exercise an option).
Early termination: you want to leave before the lease term ends (which usually requires an agreed exit, an assignment/sublease, or relying on a termination right).

If your plan is to exit early, it’s worth getting advice before sending a notice that accidentally puts you in breach. The approach can be quite different (and the cost outcomes can be too).

Before You Send A Notice: What To Check In Your Lease

Before you send a notice to not renew your lease, it’s worth doing a quick “lease health check” so you know exactly what obligations and deadlines apply.

Here are the key things to review.

1) Does Your Lease Have An Option To Renew?

If your lease includes an option to renew, the lease will usually set out:

how you must give notice (email vs letter, who to send it to, etc.)
the window for exercising the option (for example, “no earlier than 6 months and no later than 3 months before the end of the term”)
what happens if you miss the window (sometimes you lose the option entirely)

If you’re not renewing, you may not be strictly required to give notice in every lease (because the lease simply ends). However, practically, giving clear written notice early is often sensible - and some leases do require a notice confirming you’re not exercising the option.

2) What Is The End Date (And Are There Any Automatic Extensions)?

Double-check the lease end date and whether anything in the lease creates an automatic extension, holding over arrangement, or renewal mechanism.

For example, some leases deal with “holding over” by creating a month-to-month arrangement at the end of the term, sometimes at a higher rent rate. Outcomes can vary depending on your lease wording and (in some cases) the type of premises and the state/territory rules that apply.

3) How Must You Give Notice?

Many lease disputes start with a simple issue: notice was sent the “wrong” way.

Your lease often contains a “notices” clause saying:

the accepted delivery methods (post, hand delivery, email, sometimes fax in older leases)
the correct address/email for service
when the notice is deemed received (e.g. “2 business days after posting”)

Follow that clause as closely as possible. If the lease requires notice to be sent to a particular address, use it - even if you normally deal with a property manager by email.

4) Make-Good And End-Of-Lease Obligations

Even if you’re leaving at the end of the term, your responsibilities may not end on the end date.

Check for obligations such as:

make-good (restoring premises to base building condition)
removal of fit-out, signage, cabling, or equipment
professional cleaning
repairing damage beyond fair wear and tear
handover requirements (keys, access cards, security codes)

If you’re unsure how heavy your make-good obligations are, it’s often worth getting your lease reviewed early - not a week before you move out. This is also when you can plan costs and negotiate practical outcomes with the landlord.

For practical end-of-term timing, it can help to understand common month-to-month lease notice requirements, especially if your lease has moved into a holding over arrangement.

When Should You Give Notice To Not Renew Your Lease?

Timing is one of the biggest “hidden” issues with a notice to not renew a lease.

In a perfect world, you want to give notice early enough that:

you avoid accidentally rolling into another period (or triggering extra rent)
you have time to plan relocation and fit-out for the new site
you have enough lead time to negotiate make-good and exit arrangements

Follow The Option Window (If You Have One)

If you have an option to renew, there will typically be a deadline to exercise it. If you’re not renewing, you may still want to notify the landlord around that same period so expectations are clear.

Example: If your lease says your option must be exercised no later than 3 months before the end date, you might send your non-renewal notice at least 3 months out as well (or earlier). This helps avoid confusion and gives both sides time to plan.

If You’re In A “Holding Over” Period, Notice Rules Often Change

If you’ve continued occupying the premises after the lease end date, your lease may treat you as “holding over.” This often becomes a periodic arrangement (for example, month-to-month), and the notice period might be shorter (or longer) depending on your lease terms and, for some premises, the state/territory rules that apply.

This is where many businesses get caught: you think you can leave quickly, but the lease says you must give (for example) one month’s notice, and you remain liable for rent during that period.

Practical Tip: Align Notice With Your Business Plan

Even when your lease only requires (say) 1–3 months’ notice, startups and small businesses often benefit from planning earlier - particularly if you:

need a new premises fit-out
have staff and customer logistics to manage
need to relocate inventory/equipment
are renegotiating supplier delivery routes or service coverage

In other words: the legal minimum might not be the operational minimum you need to exit smoothly.

How To Write A Notice To Not Renew Lease (And What To Include)

A good notice to not renew your lease should be short, clear, and consistent with your lease’s notice clause.

While the exact wording can depend on your lease terms, your notice typically includes:

who it’s addressed to (landlord’s legal name, and any address/email required under the lease)
your details (tenant entity name, ABN/ACN if relevant, premises address)
the lease details (date of lease, any reference number)
a clear statement that you are not renewing / not exercising the option
the lease end date (and confirmation you will vacate by that date)
a request for exit steps (final inspection process, make-good discussion, key handover)

Be Careful With Ambiguous Language

Avoid language that creates uncertainty, such as:

“We might be leaving”
“We’re considering not renewing”
“We’ll see what happens closer to the time”

If your intention is non-renewal, state it plainly.

Keep It Consistent With Your Negotiation Strategy

Sometimes you’re not renewing unless the landlord offers better terms (for example, lower rent, incentives, or refurbishment). In that case, your strategy matters.

You can still give notice that you are not exercising the option right now, while leaving the door open to negotiate a new lease on different terms - but you want to avoid accidentally making commitments or missing deadlines.

If you’re negotiating, it’s also a good time to consider getting advice on your broader lease position - for example, if you’re weighing whether to renew, extend, or exit, the issues discussed in lease renewal notice periods can be a useful starting point for thinking through timing and risk (even if you’re not in Queensland, the practical concepts can still be helpful).

Common Pitfalls For Small Businesses (And How To Avoid Them)

When you’re busy running the business, it’s easy to underestimate the “admin” side of leaving premises. Here are some common traps we see, and how you can protect yourself.

1) Missing The Notice Deadline (Or Serving Notice Incorrectly)

If you have an option to renew and you miss the deadline, you could lose the option and be forced to negotiate from scratch - or move out even if you’d prefer to stay.

If you’re giving a notice that you’re not renewing, ensure you:

check the exact notice window and method
send it to the correct service address/email
keep records (PDF copy, email chain, delivery receipt)

2) Assuming You Can “Just Leave” On The End Date

Many leases require you to do more than hand back the keys. If there’s a make-good clause, you may need to remove fit-out and restore the premises.

This can be one of the biggest unexpected costs at the end of a commercial lease. Planning early and negotiating practical solutions can make a big difference.

3) Confusing A Lease With A Licence Or Shared Space Arrangement

If you’re in a co-working or shared space setup, you might not have a “lease” in the traditional sense - you might have a licence agreement instead. The notice rules can be different.

If your arrangement feels flexible but the paperwork is unclear, it’s worth clarifying your position sooner rather than later.

4) Not Coordinating Exit With Your Other Contracts

Your premises often sits at the centre of multiple business arrangements, including:

internet and phone contracts
security monitoring
waste services
equipment rentals
staff rostering and access

When you give notice that you won’t be renewing your lease, treat it like a “project start date” for your move-out plan so everything is coordinated.

5) Not Considering Your Business Structure And Signing Authority

Make sure the notice comes from the correct tenant entity and is signed/authorised correctly. For example, if your tenant is a company, the notice should be sent under the company name (not your personal name).

And if someone is signing on behalf of the business (like an operations manager), you may want the signing to clearly show they are acting for the tenant entity.

What Else Should You Do When You Decide Not To Renew?

Serving a notice to not renew a lease is only one part of a smooth exit. Here are the other key steps many small businesses and startups should plan for.

Plan Your Relocation Or Wind-Down Early

If you’re moving to a new site, you may need time for:

lease negotiations and fit-out approvals
council or building approvals (depending on your business)
signage and compliance setup

If you’re closing the business or moving to an online-only model, you may need time to handle customer communications, staff, and stock.

Review Your Customer-Facing Terms If Your Address Is Changing

If you sell online or have ongoing service delivery arrangements, your location can affect delivery timeframes, pick-up options, and how you handle complaints.

This is a good time to revisit your customer terms and ensure you’re meeting your obligations under the Australian Consumer Law (ACL).

Update Your Privacy And Compliance Documents If Your Operations Change

If you’re changing how you collect or use customer data (for example, shifting from in-store signups to online-only marketing), it’s worth making sure your privacy settings and documents stay accurate.

Consider Whether You’re Assigning Or Selling The Business Instead

Sometimes the best solution isn’t simply “leave.” If the location still has value (foot traffic, fit-out, signage, established customer habits), you might consider:

assigning the lease to another tenant (subject to landlord consent)
subleasing (if permitted) for the remaining term
selling the business as a going concern (often linked to lease arrangements)

If you’re considering a sale, the lease can be one of the most important parts of the deal - buyers usually want certainty that they can occupy the premises. This is where a structured approach (including due diligence and the right transaction documents) matters.

Document Everything

At the end of a lease, good records can prevent arguments later. Keep copies of:

your notice to not renew lease and proof of delivery
condition reports (if you have them)
photos/video of the premises at handover
make-good quotes, invoices, and correspondence
final inspection notes and key return receipts

This is especially important if there’s a disagreement about repairs, cleaning, or what “base building condition” means.

Key Takeaways

A notice to not renew lease is your written confirmation that you won’t extend the lease term or take up an option to renew.
Before sending notice, check your lease for the option window, notice method, end date, holding over rules, and make-good obligations. These can differ depending on your lease terms and (for some premises) state/territory legislation.
Serve notice strictly in accordance with the lease “notices” clause (right address, right method, and clear wording), and keep proof of delivery.
Non-renewal is different from early termination - if you need to leave early, the legal and cost consequences can change significantly.
Plan your exit as a project: relocation timing, make-good, handover, and coordination with staff, suppliers, and customer communications all matter.
If you’re unsure about your obligations or the best strategy (renew vs renegotiate vs exit), getting advice early can save time, money, and avoid disputes.

If you’d like help preparing or reviewing a notice to not renew a lease, or planning your lease exit strategy, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.

How To Give Notice Of Non-Renewal Of A Lease In Australia