Lease Agreement Sample: What Businesses Should Include

Signing a lease is a pivotal moment for any Australian business - whether you’re opening your first retail store, setting up an office, or leasing warehouse space. A well-drafted lease agreement can make the difference between thriving and struggling, giving you security, clarity, and legal protection as you grow your venture.

But what does a strong lease agreement look like? How do you ensure your lease covers all the essentials and protects your interests? If you’ve ever searched for a lease agreement sample, lease agreement template, or rental contract sample and felt unsure where to start, you’re not alone.

In this guide, we’ll break down the must-haves for any commercial or private rental agreement, explain the differences between common lease documents, and share practical tips for making your rental experience smooth and worry-free. We’ll also point out when to use a sample or template and when it’s wise to get tailored legal help from commercial lease experts.

Whether you’re after a sample lease agreement, a private rental agreement template, or just want to understand your obligations, keep reading. At Sprintlaw, we’re here to help you navigate leases confidently, so you can focus on running your business.

What Is a Lease Agreement?

A lease agreement is a legally binding contract between a landlord (lessor) and a tenant (lessee) that outlines the terms under which property is rented. For businesses, this typically means securing the right to occupy commercial premises (such as shops, offices, or industrial spaces) for a set period, while paying rent and following agreed conditions.

A lease agreement isn’t just a formality. It’s a document that sets out your rights and responsibilities, the rent payable, the length of your lease, and what happens if things go wrong. It’s your protection against unexpected surprises - and a key tool in risk management for your business.

While there are many lease templates and samples available for download, it’s important to understand that these are just starting points. Every business’s leasing needs are unique, so using a generic contract template without customising it can expose you to costly disputes or overlooked risks.

Is There a Difference Between Lease Types?

Yes, and it’s crucial to get the right type of agreement for your situation. Here are the main types of lease agreements you’ll come across:

• Commercial Lease Agreement: For shops, offices, and warehouses. Usually detailed, long-term, and regulated by state-based commercial tenancy laws.
• Retail Lease Agreement: Designed for premises where goods or services are sold directly to the public. Subject to extra regulations (like the Retail Leases Act in NSW) to protect tenants from unfair terms.
• Residential Tenancy Agreement: Used when leasing a home or apartment to a tenant to live in. Governed by state residential tenancy laws and not suitable for business premises.
• Private Rental Agreement Template: Sometimes used for informal or family arrangements, but still legally binding if all key terms are included.

There are many templates and samples online - like rental agreement word format, rent agreement letters, and rental agreement templates free to download - but ensure you match the agreement to your business context.

Why Not Just Use a Lease Agreement Template?

Templates (like a simple lease agreement template, rental contract sample, or online rental lease template) can be a great way to start thinking about the structure of your agreement. A good template will typically include basic sections like:

• Parties (landlord and tenant details)
• Description of Premises
• Lease Term
• Rent and Payment Terms
• Bond/Deposit Details
• Permitted Use
• Maintenance and Repairs
• Termination and Renewal
• Default and Remedies
• Signatures

However, landlord-tenant law is complex and varies by state and tenancy type. Generic templates may miss vital clauses, overlook local regulations, or include hidden pitfalls that disadvantage one party (often the tenant). For example, a residential tenancy agreement sample will not adequately protect a business leasing a warehouse or office.

It’s wise to use lease forms and templates only for reference - and have your final document reviewed, or preferably drafted, by a professional familiar with leasing law in your state. This is especially true for commercial arrangements involving significant investment or complex terms. Sprintlaw offers expert help for drafting and reviewing commercial lease agreements tailored to your business needs.

What Should a Good Lease Agreement Sample Include?

Let’s break down the key elements every lease agreement sample (and final contract) for an Australian business should contain. We’ll focus on commercial scenarios, but many points apply to private or residential agreements as well.

1. Accurate Party and Property Details

Make sure the lease document clearly identifies the legal names of the landlord and tenant (including ACN if a company), and provides a detailed, unambiguous description of the premises (including address, shop/office number, and any included parking/storage).

2. Lease Term and Renewal Options

The agreement must state:

• When the lease starts and ends
• Whether there’s a fixed term (e.g., 3 years) or an ongoing (periodic) tenancy
• Any option to renew, extend, or terminate early (and the process for exercising these rights)

Uncertainty here leads to costly disputes down the track. For more on what happens at lease expiry, see our guide to contract expiry options.

3. Rent Payable, Outgoings, and Security Deposit

• Specify how much rent is payable, how it must be paid (bank transfer, in advance, etc.), and the frequency (monthly, quarterly)
• List any outgoings the tenant must pay (e.g., rates, water, electricity, cleaning, body corporate fees)
• Include details of any bond or security deposit, and what circumstances allow deduction
• Outline how and when rent increases may occur (fixed, CPI, market review)

4. Permitted Use of Premises

Describe specifically what business activity is allowed. Restrictions can range from “retail sale of shoes” to a broader “retail business” - but limits must be clear, otherwise disputes can arise. This section may also cover requirements to comply with council permits or zoning laws.

5. Maintenance, Repairs, and Alterations

• Who is responsible for day-to-day maintenance (tenant or landlord)?
• What repairs, if any, require landlord approval?
• Does the tenant have the right to alter, install signage, or make improvements?
• What ‘make good’ obligations exist at lease end (returning premises to original condition)?

Allocating responsibilities up front helps avoid arguments later. For more on repairing obligations, see our article on the importance of clear and confidential terms in business agreements.

6. Insurance and Liability

• Does the tenant need to hold public liability insurance?
• How much coverage is required?
• Who is responsible for insuring the building, contents, and fixtures?
• Is there an indemnity clause covering losses or damages, and does it favour one side?

Insurance clauses are critical in managing business risk, especially if your business is open to the public or stores valuable equipment or inventory on site.

7. Default, Breach, Termination, and Dispute Resolution

• What constitutes a default (e.g., late rent, unauthorised alterations)?
• What are the landlord’s and tenant’s rights if there is a breach?
• What notice must be given before action is taken (such as termination or eviction)?
• Is there a dispute resolution process (mediation or arbitration) before going to court?

Having clear processes for handling disputes can save everyone time, money, and stress.

8. Disclosure, Compliance, and Statutory Requirements

Retail leases in Australia often require the landlord to provide a disclosure statement before signing, summarising key facts and costs. Check your state laws for specifics.

Any lease should clarify that the parties will comply with all relevant laws - zoning, workplace health and safety, and (if applicable) any retail leasing legislation. This ensures your business operates legally at all times.

9. Special Clauses (Options, Subleasing, Assignments)

There may be additional, industry-specific, or negotiated terms, such as:

• Option Periods: The ability to renew the lease at the end of the fixed term
• Subleasing or Assignment: Whether the tenant can assign the lease or sublease to someone else, and under what conditions
• Early Termination: What happens if you want to end the lease early

Every business is different, so these clauses need to be tailored to your objectives and future plans. If you’re considering subletting or selling your business in the future, discuss these with your lawyer before signing.

10. Other Essential Terms

• What happens to fixtures, fittings, and improvements at lease end?
• Who pays for compliance with new regulations that arise during the term?
• Is there a landlord’s right to inspect, and how much notice must they give?
• Rules regarding signage, car parking, and common areas

Reviewing a lease sample can highlight areas you may not have considered but it’s essential not to overlook these details.

What About Free Rental Agreement Templates?

Free rental agreement templates (including rental agreement word format, rent templates, or downloadable sample lease agreements) are widely available online. They can be a useful resource to understand the basic structure of a lease document and help you prepare for negotiations.

However, free templates typically lack customisation for your business’s circumstances, your state’s legislation, and the unique property in question. Relying solely on a rental agreement template free of charge can expose you to problems if things go wrong - especially with larger tenancies or valuable premises.

We always recommend that businesses have their lease reviewed by a legal expert before signing. This is one of the most important contracts you’ll enter as a business owner. For businesses looking for a tailored lease document, Sprintlaw offers a range of commercial lease services - including drafting and reviewing custom commercial lease agreements and advising on obligations under the law.

Other Legal Considerations Before Signing a Lease

Entering into a lease is a major business commitment. Make sure you:

• Have the correct business structure set up (learn more about business structures)
• Register your business name with ASIC (see our business name registration guide)
• Obtain any required local council permits or licences (e.g., signage consent, food business licence)
• Understand and comply with your industry’s codes and regulations (see our guide to business regulations)
• Check your obligations under the Australian Consumer Law if your business interacts with the public

Most importantly, make sure the lease agreement accurately reflects any special agreements or promises discussed during negotiation. If it’s not in writing, it’s very hard to enforce later.

Essential Legal Documents for Leasing and Running Your Business

A lease is just one part of your business’s legal toolkit. Consider these other documents to protect your venture:

• Commercial Lease Agreement: Sets out all terms and conditions for occupying commercial space (what is a commercial tenancy agreement?).
• Retail Sublease or Assignment Deed: For subleasing or transferring a lease to another tenant (learn more about subletting).
• Property Licence Agreement: For shared workspaces or arrangements that aren’t full leases (property licence info).
• Service Agreements: For cleaning, security, or maintenance of your premises (when to use a service agreement).
• Privacy Policy: Especially if customers' personal information is collected on your premises or website (privacy policy guide).
• Workplace Policies: If hiring staff, set clear standards with employment contracts and workplace handbooks (workplace policy tips).

You may not need every document above straight away, but it’s smart to plan ahead and build a strong compliance and risk management base from the outset.

When Should I Get Legal Advice On a Lease?

Leases are technical legal contracts, and landlord-tenant disputes are one of the most common - and expensive - problems for businesses. It’s best to:

• Get advice before you sign any agreement (especially for multi-year leases or valuable fit-outs)
• Ask for a review if the other party changes terms, introduces legal jargon you’re unsure about, or requests non-standard clauses
• Seek help if you want to negotiate for more favourable terms (such as a rent-free period, fit-out contributions, or more flexible subletting rights)
• Check your options if you’re thinking about ending or assigning your lease early, or if disputes arise

Sprintlaw’s experienced team can review your draft lease, explain risks, highlight “red flag” clauses, and help you negotiate a lease that protects your interests. Our flat-fee commercial lease review service is designed to give you confidence before you sign.

Can I Use a Lease Agreement Sample for Residential Agreements?

It’s important not to mix up residential and commercial lease documents. Every state and territory in Australia has laws that specify mandatory terms for residential tenancy agreements (sometimes called residential lease agreement templates or residential tenancy agreement samples).

If you’re renting out or leasing a home or apartment for business purposes (e.g., as a live-in studio), you may need a residential agreement - but check your council’s zoning regulations and disclose the true use to the property owner and your insurer.

Always use the correct agreement (and official state forms where required) to ensure your contract is enforceable and you can resolve disputes with confidence.

Key Takeaways

• A lease agreement is a legally binding contract that protects both landlord and tenant - don’t rely solely on a one-size-fits-all template.
• Key clauses to include cover rent, lease term, permitted use, maintenance, insurance, dispute resolution, and any agreed special conditions.
• There are important legal differences between commercial, retail, and residential leases - make sure you use the correct form for your needs.
• Custom lease drafting or legal review will help you avoid hidden risks and negotiate more favourable terms, especially for significant business investments.
• Complement your lease agreement with other essential legal documents such as service contracts, privacy policies, and employment agreements.
• Seeking legal advice before signing can prevent costly disputes and give you peace of mind as you scale your business.

If you would like a consultation on your lease agreement or rental contract needs, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.