Security of tenure refers to the tenant’s right to remain in the property. More specifically, the Landlord and Tenant Act 1954 provides commercial tenants security of tenure by giving them the right to renew their tenancy when their lease comes to an end.

Leases may include a provision known as a break clause which allows either the tenant or the landlord (or both) to end the lease at a specified date without waiting for the full term of the lease to expire. This may be beneficial to the party who wants to end the lease early – such as a landlord who wants to redevelop or a tenant who wishes to leave without finding a subtenant or assignee– however early termination may result in problems and/or loss to the other party

A commercial lease typically deals with the following:

• the type of property being let;
• the address of the property being let;
• the term of the tenancy and whether the tenancy is for a fixed term or renews periodically;
• the amount of rent payable, how often and when the rent should be paid;
• the type of business that may be conducted on the premises;
• ownership of any leasehold improvements; and
• the provisions of any security/damage deposit.

In addition, a commercial lease may also identify the following:

• provisions for lease renewal;
• landlord improvements and signing incentives;
• tenant improvements;
• whether the tenant can assign or sublet the property:
• notice provisions for termination of the tenancy; and
• insurance provisions.

The problem with oral lease agreements is that they can be difficult to enforce. If a dispute arose, a court would have to hear evidence and decide whose version of the story to accept. If there is a written agreement, courts will generally be obligated to uphold the terms of the written agreement even if the courts don’t like them. Some jurisdictions require that any contract dealing with land or an interest in land must be in writing to be enforceable