What you need to know
Did you know that in Victoria, as of October 1st, 2020, specific changes were made to the Retail Leases Act 2003, resulting in the creation of the Retail Leases Amendment Act 2020? These alterations could affect you if you are a landlord or a tenant of a retail lease. While this revision did occur two years ago, unless you regularly consult with experienced property lawyers, you may not be aware of your new rights and responsibilities according to this new legislation. Whether you are a landlord or a tenant, it’s essential that you seek property legal advice on your situation, as things can alter over time. Your property lawyers can keep you up to speed with any new legislative changes relevant to your situation.
What are the changes made by the Retail Leases Amendment Act 2020?
Costs of essential safety measures
Whereas before, a landlord would pay for the repair and maintenance of essential safety measures (ESM), the Retail Leases Amendment Act 2020 stipulates that they can now charge their tenants for these expenditures. You should ask your property lawyers if this clause applies to you, as it depends on the tenant’s lease, disclosure statement, and annual estimate of outgoings. If you’re wondering what essential safety measures are, the phrase covers smoke detectors, sprinkler systems, fire extinguishers, fire exit signs, and yearly safety inspections. This amendment is relevant to new and existing leases but only applies to expenses that occurred after October 1st, 2020. Other new provisions allow tenants to provide repair and maintenance work on an ESM.
Security deposits and bonds
The revised legislation gives a definite time frame for a landlord to give back the deposit to their tenant. If the tenant has met their lease terms, the landlord must return the deposit within 30 days after the end of the lease. Previously, the legislation said “as soon as practicable,” which left the situation open to interpretation. A rigid timeline further protects the tenant from delayed or withheld security deposits. If your landlord is late paying back your security deposit, you may want to check your rights with property lawyers in case mediation or legal proceedings are necessary. When in doubt, it’s always best to obtain property legal advice from a professional.
Do you want to know ‘Who pays the costs of a commercial lease dispute?’
Disclosure statements and leases
The paperwork associated with a lease – the lease itself and a disclosure statement – must be given to the tenant 14 days before it begins. In the previous legislation, the timeline was seven days. If the landlord provides the tenant with a copy of the lease and then makes subsequent changes, they must give the tenant an updated document at least 14 days before the lease begins. If you are confused by all the paperwork involved in retail leasing, hire experienced property lawyers to help you. Seeking property legal advice could save you money and potential headaches.
New options for tenants
When it comes to the option to renew the lease, the landlord must now notify the tenant at least three months before the option date expires. If the landlord fails to provide this notice, the tenant has a right to renew for three months after the statement finally arrives. For 28 days after receiving the renewal notice, the tenant can request an early market rent review. This legislation allows the tenant to know ahead of time how much rent they will be responsible for paying under the renewed lease before such times as they sign and agree to it. The tenant also enjoys a 14-day cooling-off period if they continue the lease without asking for an early rent review.
Are you wondering ‘Can I leave a commercial lease early?’
P&B Law are here to provide you with the best property legal advice
We have a wealth of experience helping business owners and property investors get the most out of their situations. You can trust our property lawyers to keep you informed of any legislative changes that could affect your interests. Contact us today to benefit from our extensive knowledge of property law.