Licence to occupy, desks D7 and D8
Licence to occupy template for desk space without a lease
A licence to occupy gives someone permission to use space without giving them exclusive possession of it, which is the line between a licence and a lease. This one covers two desks in a Melbourne studio at $180 a week including GST, with fixed access hours, a right to move the desks on seven days notice, and 14 days to end it from either side.
The document, page by page
Every page as it renders and as it prints, with nothing summarised. Read the wording before you reuse it.
Section by section
What each section is for, so you can keep the ones you need and drop the rest.
- Parties and licence summary
- Both ABNs, plus the desks, the weekly fee, the start date and the notice period.
- 1. What is granted
- A licence and not a lease, no exclusive possession, and the right to reallocate desks on notice.
- Included in the fee
- A table covering the desks, storage, meeting room hours, internet and printing.
- 2. Fee, deposit and outgoings
- The $180 weekly fee, the yearly rise on notice, the $360 deposit and the charges above the allowance.
- 3. Access, conduct and insurance
- Hours and fob access, the studio rules list, and who insures what.
- 4. Ending the licence
- Fourteen days either way, immediate termination grounds, and no assignment or sharing.
- Signatures
- A block for the studio and one for the licensee.
Clauses in this document
How to adapt this agreement
For a private office rather than open desks, look carefully at whether you are still writing a licence: a lockable room the operator cannot enter starts to look like exclusive possession, and the document may need to become a lease with the protections that follow. For a licence over retail or hospitality space, take advice first, because a space used for retail trade can attract retail tenancy legislation whatever the document is called. For a longer arrangement, extend the notice period to one or two months and add a modest fixed term, so both sides can plan, and keep the reallocation right if the operator genuinely needs it.
Which law the terms follow
This licence is governed by the law of Victoria and is written for a shared studio in Cremorne. The fee is quoted including GST with a monthly tax invoice, which suits a licensee registered for GST. Because no exclusive possession is given, the document is not written as a retail or commercial lease, and nothing in it should be relied on as a substitute for advice where the space is used for retail trade.
What makes this document work
It says what it is on the first line, and then proves it
Clause 1.1 states that no exclusive possession is given, and clause 1.2 backs it up by letting the studio move the licensee to equivalent desks on seven days notice. That right to relocate is the practical difference from a lease, and putting it in writing is what stops the document drifting into being one.
The fee buys a defined list, so extras are never a surprise
A four row table sets out the desks, the storage pedestals, eight meeting room hours a month and printing to 200 pages. Above the allowance the rates are stated: $25 an hour for the room and 12 cents a page, invoiced monthly rather than argued about later.
Fourteen days either way, with the fee rise tied to the same clause
Either party can end the licence on 14 days notice with no reason. The fee may rise once in any 12 months on 30 days notice, and the licensee can simply leave under the notice clause rather than accept it, which is the balance a short licence is supposed to hold.
Questions people ask
What is the difference between a licence to occupy and a lease?
A lease gives exclusive possession of a defined space, so the tenant can exclude everyone including the landlord. A licence gives permission to use space alongside others. In this document the studio keeps the right to reallocate desks and the licensee gets no interest in the land, which is what makes it a licence rather than a lease.
What should a licence to occupy include?
The parties, what is being used and where, a statement that no exclusive possession is granted, the fee and how it is paid, what the fee includes and what costs extra, access hours, conduct rules, insurance, whether the licence can be transferred, and how each side ends it. Three pages is usually enough for a desk licence.
Can a licence to occupy be transferred to someone else?
Not under this one. Clause 4.2 makes the licence personal to the named licensee, so it cannot be transferred, shared or sublicensed, and a company the licensee later forms is not automatically covered. That is normal for shared space, where the operator is choosing who sits in the room as much as what they pay.
Does a licensee need their own insurance?
Yes. This agreement requires public liability cover of at least $5 million and leaves the licensee to insure its own equipment. The studio insures the building and its own contents and is not responsible for the licensee's property, whether the door was locked or not, which is standard for a shared floor.
How much notice is needed to end a licence to occupy?
Fourteen days written notice from either side, with no reason required, and the fee is paid to the last day. The studio can end it immediately if the fee is more than 14 days overdue, if someone is put at risk, or if the desks are handed to someone else without permission.
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Sources
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