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Guide · Renewals

What should I check before renewing a commercial lease?

By Chris Rencken · Last reviewed 17 October 2026

Start at least nine to twelve months before your lease expires. If your lease gives you an option to renew, it may require written notice by a set date, and missing it can lose you the option. Before you negotiate, know your total occupancy cost, not just your rent, and treat the renewal as the moment to fix any recovery terms that have not worked for you.

1. Check the dates first

Find your lease expiry date and any renewal option. Note:

• the latest date for exercising the option, and how notice must be given (for example, in writing to a specific address);
• whether the option is on the same terms, or at a rental to be agreed or determined;
• what happens if you stay on after expiry without a new agreement.

Put the notice date in your diary with a reminder well before it.

2. Know your total occupancy cost

Rent is only part of what you pay. Add up everything on your statements for the last twelve months and divide by your lettable area to get a cost per square metre per month. Split it into two parts, because they behave differently:

• Property-related costs: rent, rates and fixed or allocated building recoveries such as operating costs.
• Consumption-dependent costs: electricity, water and other charges that vary with how you use the premises.

For example (illustrative), a tenant with 250 m²:

Use the total to understand what the premises cost you, but compare the components separately: the property-related costs show what the space costs, while the consumption-dependent costs depend on your own operations.

3. Escalation compounds

A small difference in annual escalation adds up over a lease term. In this illustrative example, the starting rent is R20,000 a month over five years:

Monthly figures are rounded to the nearest rand; the five-year totals are calculated from the unrounded figures. The difference is R55,082 over five years, and almost R2,000 a month by year five. Escalation terms vary by sector, landlord and negotiating position, so test any proposed rate against your own circumstances rather than a general market figure.

4. Fix the recovery terms

A renewal is the best opportunity to correct how costs are recovered. Consider:

• the allocation basis: which areas or percentage set your share, and how vacancy is treated;
• exclusions: which costs, such as capital items, are not recoverable;
• fees: whether a management or administration fee applies, on what, and at what rate;
• caps: whether increases in operating costs are limited;
• electricity: how electricity is metered and charged, and against which tariff;
• information: your right to receive reconciliations and to inspect supporting invoices.

5. Other terms to review

• the length of the new lease and any further option;
• how "market rental" is set, and how a disagreement is resolved;
• the deposit or guarantee, and whether the existing one carries over;
• reinstatement obligations at the end of the lease;
• parking, signage, trading hours and any exclusivity.

6. Deal with past disputes before you sign

Before signing a renewal, check whether it includes any settlement, waiver or release affecting earlier billing disputes. A renewal does not automatically eliminate historic claims, but the wording of the agreement may affect your rights. Where the amounts are material, take legal advice before you sign.

Documents to gather

• The current lease, all addenda and the renewal option clause.
• Twelve months of statements, and the last annual reconciliation.
• Any correspondence about disputed charges.
• The landlord's renewal proposal, if you have received one.

Preparing for a renewal?

TenSure Renew prepares you for the negotiation: what you pay today, how it compares, and which terms to raise. A TenSure Check beforehand gives you the evidence on past charges. Start with a TenSure Check or see our services.