A lease is a special contract between the lessor (the owner) and the lessee (the renter), to use property. A lease can relate to land, buildings, retail and office space or to personal property such as plant, vehicles, and office systems. Where the lease relates to land, buildings, retail and office space the owner is called the "landlord" and the lessee is called the "tenant".

Retail Leases Act 1994 applies to "retail shop leases". This is defined by the Act to include most businesses that are thought of as shops. However, there are some exclusions.

Obtain legal advice if you are considering a retail shop lease. If the lease is for retail premises, the lessor must ensure the lease complies with the guidelines in the Retail Leases Act. For more information about the Retail Leases Act 1994 or entering into a retail shop lease, visit the NSW Government's Retail Tenancy Unit.

Most leases hold the lessee responsible for keeping the premises, fixtures and fittings in good repair. Many leases place responsibility for payment of all or a portion of costs like council rates, insurance and maintenance, on the lessee. These items should be clearly detailed in the lease agreement and will be in addition to the agreed rental amount.

Unless otherwise agreed in writing, vacating the premises before the lease expires will leave a business owner liable for rent and ongoing costs if a new tenant is not found. In addition, the tenant is generally responsible for “Make good” costs to restore the premises to their pre rental condition. Carefully read the terms of the Lease as these are legally enforceable.

An equipment lease is a means of financing the purchase of vehicles, plant and office equipment. The leased equipment is still owned by the bank or finance company until the expiry of the lease term.

Lease payments attract GST and are tax deductible.