What Protections Do Retail Shop Lease Tenants Receive In Perth?

March 26, 2024    propertylawyersperthwide
What Protections Do Retail Shop Lease Tenants Receive In Perth?

Before entering into any retail leases, it is imperative to thoroughly understand the Retail Shops Act in WA and know the rights you are entitled to and the obligations you are expected to uphold. The Retail Shop Lease Act of 1994 applies to any business that engages in “retail provision of services” to a specific audience. These fall under retail premises.

 

This article is the best retail shop lease agreement lawyers in Perth guide to the rights and obligations you assume when entering into any retail lease.

What exactly is the Retail Lease Act?

Under the Retail Shop Lease Act of 1994, provisions are made for retail shops and services being leased to interested tenants. The Retail Lease Act of 2003 defines these provisions under retail premises, which are used for:

  • Selling or hiring provisions or goods from a retail service.
  • Certain kinds of businesses and services can be leased, as determined by the Minister.

For example, a retail premise could be:

  • A vehicle repair service providing services to a bus renting service that uses it for the upkeep of its fleet.
  • Selling accounting or legal services to universities that use these services in their administrative processes.

What rights and duties should you know of as a tenant?

Before entering a retail shop lease, tenants should be well informed about what they can expect from their landlords and the duties the tenants will be expected to honor. Here’s how a retail lease in Perth works:

1. Rights of the tenant

When the tenant starts negotiating with the landlord, they should receive a copy of the lease as soon as possible, along with a disclosure statement. This copy must reach the tenant no later than 2 weeks before the lease is entered into. The disclosure can include:

  • Duration of the lease
  • Costs of leasing the property
  • Potential options for future negotiations
  • Specific information in case of leases for shopping centers
  • The tenant’s furnishing, supply, and fit-out needs
  • Renovation or demolition plans

2. Renewal

If the tenant’s lease does not mention renewal terms, the landlord must update them with the same at least 6 to 12 months before the term ends. They can do this by:

  • Offering an option to renew the lease with fresh terms and disclosure.
  • Communicating to the tenant that they do not wish to renew the lease with them.

3. Repairs Responsibilities

The landlord is vested with the responsibility of maintaining the conditions of the premises to the standard that it was at the beginning of the lease. They are responsible for maintaining that baseline. The repairs can include:

  • The installations and structures of the premise.
  • The smooth functioning of the appliances and the utilities supplied to the premise.
  • Equipment and plants of the retail premise.

4. Interference with the tenant

Suppose the landlord wishes to make major repairs, renovations, or refurbishments that can interfere with tenancy. In that case, the tenant has the right to be informed about it in writing 60 days before starting the same. In case of emergency refurbishment or repairs, the landlord must give the tenant a reasonable time frame and notice before starting their operation.

5. Compensation for interference

In some cases of interference, the tenant might be entitled to compensation during the following conditions:

  • The interference reduces the tenant’s access to the retail premises.
  • The interference takes place unreasonably and interferes with the flow of customers and the retail services.
  • Disrupts the tenant’s trade
  • Landlord neglects basic cleanliness and maintenance during the process of repairs, renovations, or interference.
  • Damages to the equipment and plants in the retail store that are not under the tenant’s responsibility.
  • Causes defects in the surrounding areas of the retail premise or the building.
  • Does not communicate to the tenant about repairs or renovations on time.
  • Does not take measures to prevent the disruption of the tenant’s business.

However, tenants must also note that they cannot make their landlords liable for compensation if they were working under emergency conditions or under law compliance.

Summing up

Property laws are often thoroughly detailed, differing from each state and type. This makes it all the more important for tenants to know about their rights in retail leases to protect their best interests.

 

One of the easiest ways to achieve this is by consulting expert property lawyers in Perth, who can simplify the laws for you.

 

It is imperative to get effective legal assistance and contact the team of best WA property lawyers for guidance today.

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