Lease Agreement 40-Point Checklist - Don’t Sign Until You’ve Checked These Boxes
• 27 Aug 25
The wrong lease can strangle your business before it even opens its doors.” - Matt Glynn
Introduction
For many startups, signing a commercial lease is the single biggest financial commitment after hiring staff. Rent, obligations, and liabilities can lock you in for years. Too often, founders skim the document, sign in a rush, and discover later that they’ve agreed to clauses that bleed them dry.
This checklist is designed to help you put structure around your review. It won’t replace legal advice - but it will make you a sharper negotiator, help you ask the right questions, and show you where the traps are hiding.
How to Use This Checklist
◼️Don’t DIY: Always have a lawyer review your lease agreement before signing.
◼️Talk to Tenants: Ask existing tenants about the landlord’s behaviour and track record.
◼️Check the Premises: A solid physical inspection often reveals more than the contract.
◼️Prioritise Risks: Not every issue is a dealbreaker - know what matters most for your business.
◼️Negotiate Smart: Remember: leases are drafted for landlords, not tenants. Push back.
40-Point Lease Agreement Checklist
◼️Lease Parties: Are the landlord’s details accurate and reliable?
◼️Premises Description: Is the space clearly identified in the contract?
◼️Permitted Use: Does the lease allow your exact business activity?
◼️Zoning Approval: Is the property zoned correctly for your intended use?
◼️Lease Term: Do you understand the duration and renewal options?
◼️Break Clause: Is there a fair right to terminate early?
◼️Rent Amount: Is rent clearly stated and in line with market rates?
◼️Rent Escalation: Are rent increases capped and predictable?
◼️Rent-Free Period: Is there an incentive period for setup/fit-out?
◼️Deposit Amount: Is the security deposit reasonable?
◼️Deposit Return: Are the conditions for refunding clear?
◼️Service Charges: Are service and maintenance fees transparent?
◼️Utilities Costs: Are utilities included or separately billed?
◼️Fit-Out Approval: Do you need landlord consent for renovations?
◼️Fit-Out Contribution: Will the landlord cover part of the fit-out costs?
◼️Repairs Obligation: Are you liable for major structural repairs?
◼️Maintenance Duties: Who is responsible for ongoing maintenance?
◼️Reinstatement Clause: Are you required to restore the space to original condition?
◼️Insurance Cover: Does the lease specify mandatory insurance?
◼️Public Liability: Are you covered for customer accidents on site?
◼️Subletting Rights: Can you sublease or assign the space if needed?
◼️Signage Rights: Do you have rights to external or internal signage?
◼️Car Parking: Are parking spaces provided for staff/customers?
◼️Access Hours: Are your operating hours restricted by the lease?
◼️Security Arrangements: Is building security covered in the agreement?
◼️Compliance Costs: Who pays for compliance upgrades (fire, safety, accessibility)?
◼️Force Majeure: Is there relief for disasters beyond your control?
◼️Personal Guarantee: Are founders/directors required to personally guarantee the lease?
◼️Default Remedies: What happens if you miss a rent payment?
◼️Lock-Out Clause: Can the landlord lock you out without a court order?
◼️Dispute Resolution: Is there a clear mechanism for resolving disputes?
◼️Jurisdiction Law: Which country/state’s law governs the lease?
◼️Renewal Rights: Do you have the option to renew, and on what terms?
◼️Market Review: Is renewal rent based on fair market valuation?
◼️Landlord Obligations: Does the landlord have to maintain common areas?
◼️Exit Conditions: Are you protected against unreasonable exit costs?
◼️Fit-Out Removal: Do you have to strip the premises back at the end?
◼️Assignment Approval: Is landlord consent required for lease transfer?
◼️Landlord Reputation: Have you checked the landlord’s track record with tenants?
◼️Premises Condition: Has the property been inspected for defects before signing?
Final Thoughts
A lease is not just “rent for space.” It’s a bundle of long-term commitments that shape your cost base, flexibility, and risk. Many landlords hope tenants won’t read past the rent figure - don’t give them that advantage.
Have your legal team review the agreement, do your due diligence on the landlord and the site, and remember: not every risk is fatal. If the property is in physically good condition and the major obligations are fair, you can move forward with confidence.
How GLS Can Help You
We can support you in navigating the risks of commercial leases by:
◼️Reviewing lease agreements for risk exposure.
◼️Advising on tenancy negotiations and break clauses.
◼️Drafting side letters to clarify obligations.
◼️Checking zoning and permitted use.
◼️Reviewing landlord obligations and service charge provisions.
◼️Advising on fit-out and reinstatement clauses.
◼️Assessing exit strategies and renewal rights.
◼️Training founders on lease negotiation tactics.
◼️Investigating landlord reputations and dispute histories.
◼️Supporting in lease dispute resolution.
With the right support, your lease can be a foundation for growth - not a trap that drains your runway.
Observations and Tips
- Review the Entire Lease Carefully Before Signing: Commercial lease agreements often contain hidden liabilities, restrictive clauses, and landlord-friendly terms.
- Verify Rent, Deposits & Additional Costs Clearly: Businesses should assess rent escalation clauses, maintenance charges, utilities, insurance, and hidden operational expenses.
- Check Repair & Maintenance Obligations: Tenants should clearly understand who is responsible for structural repairs, fittings, and maintenance costs.
- Understand Exit, Renewal & Termination Clauses: Break clauses, renewal rights, lock-in periods, and early termination penalties can significantly affect business flexibility.
- Confirm Permitted Use & Zoning Compliance: The property must legally allow the intended business activity and operational requirements.
- Review Personal Guarantee Clauses Carefully: Founders and directors should avoid unnecessary personal liability exposure wherever possible.
- Assess Fit-Out & Reinstatement Obligations: Tenants may be required to restore the premises to its original condition at the end of the lease.
- Check Subletting & Assignment Restrictions: Businesses should understand whether they can transfer or sublease the premises if operational needs change.
- Inspect the Property & Landlord Background: Maintenance issues, previous disputes, and landlord conduct can materially affect operations.
- Use Professional Legal Review Before Execution: A properly negotiated lease can reduce litigation risks, financial exposure, and operational uncertainty.
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