Gross et al (p.1) defines lease as a contractual agreement where one party (lessee) agrees to rent the property of another party (lessor). The contract, therefore, guarantees the tenant use of an asset (lease property). The lessor or owner on the other hand has the right to receive regular payments from the property user. As a lessee, therefore, it is important to understand all terms and conditions involved in the offer of a lease property including costs and duration.
The under South Australia’s real estate management agencies, two categories of lease property exist. These include Commercial lease property and residential lease property. Commercial lease property relates to business activities and premises. They are organized into net leases, gross leases, and absolute net leases.
South Australia’s tenancy laws have different regulatory provisions governing ownership, service charges, lease length, renewals and other aspects of lease property. Based on lease length, the lessor is obliged to make clear the lease duration, any appended rights and whether there is a possibility to extend the lease time upon expiry (Holmes p.12) Also, the property owner has to explicit in the offer with respect to the service charges including how costs are determined, their coverage and the extent to which the user can be held liable. This provision applies to equipment, machinery, and structures. However, some lease agreements do not allow the lessee to reinstate a property to the original state before notifying the owner since actions affecting the property are based on the underlying terms and conditions of the contract.
Any alterations and changes in of use of a lease property are unacceptable South Australia’s lease contracts laws. This is because the contract usually places the responsibility on the lessee to check compliance proposed use with planned consent. This limits the usage of property to a specified purpose.
Gross, Edward K., Dominic A. Liberatore, and Stephen T. Whelan. «Leases.» Business Lawyer 70.4 (2015): 1183-1196.
Holmes, John. «Explorations In Australian Legal Geography: The Evolution Of Lease Tenures As Policy Instruments.» Geographical Research 52.4 (2014): 411-429.Academic Search Premier. .