RETAIL LEASES ACT - KNOW YOUR RIGHTS

Are you aware of your rights under the Retail Leases Act?

Many businesses don't realise the benefits that they have when protected by the Retail Leases Act. Each state within Australia varies and has its own Retail Leases Act which is heavily governed and prevails over any lease document.

You don't necessarily have to be a shop retailer for the Act to apply and there are various factors to take into consideration.

Your rights under a Retail Leases Act includes many provisions which take precedence over your actual lease documentation. Some key points are listed below:

Key protections and rights

• Mandatory Disclosure Statement: The landlord must provide a Lessors Disclosure Statement, at least 7 days prior to you signing your lease, outlining key lease terms, including rent, outgoings, and renewal options.

• Undisclosed costs: You are not required to pay for outgoings or other contributions that were not disclosed in the landlord's disclosure statement.

• Retail Tenancy Guide: The landlord must provide you with a copy of the Retail Tenancy Guide at the outset of any lease negotiations and prior to the signing of a lease.

• Unconscionable conduct: You are protected from misleading or deceptive conduct by the landlord.

• Rent payment: You cannot be required to pay rent until the landlord has substantially completed their fit-out obligations.

• Lessor's redevelopment: Provisions are in place to protect tenants to ensure they are given suitable timeframes and landlord's must adhere to these, no matter what is written in the lease.

• Lease registration: In some cases, the lease must be registered - the requirements in each state varies.

• Damage: If the premises are damaged, you may have a right to a rent and outgoings reduction proportionate to the unusable area.

• Dispute resolution: You can refer disputes to mediation or apply to NCAT for orders regarding issues like money, rectification of lease documents, or unconscionable conduct.

• Option to renew: You can request an early determination of market rent to help decide whether to exercise a renewal option. 

• Lease Renewal: The landlord's obligations to the existing tenant.

If you are concerned what rights you have, or whether your business may fall under the Retail Leases Act, we can provide our expert advice relevant to your state. Do not delay in finding out your rights on this very important legislation. Call Lease Negotiation Services on 0401 996646 for further details.