Commercial Tenancy (Retail Shops) Agreements Act 1985 Tenant Guide: Everything You Need to Know
Entering into a commercial tenancy agreement can be an exciting time for a business owner. However, before committing to any lease agreement, it is essential to understand your rights and responsibilities as a tenant under the Commercial Tenancy (Retail Shops) Agreements Act 1985.
This guide is designed to provide you with a comprehensive understanding of the Act and its impact on retail shop tenants in Australia.
What is the Commercial Tenancy (Retail Shops) Agreements Act 1985?
The Commercial Tenancy (Retail Shops) Agreements Act 1985 is a piece of legislation that governs the leasing of retail shops in Australia. The Act applies to most retail leases in all states and territories, except for Western Australia and the Australian Capital Territory.
The purpose of the Act is to regulate the relationship between landlords and tenants, protect the interests of both parties, and ensure that tenants are not unfairly disadvantaged in lease negotiations.
Key Provisions of the Act
The Act contains several key provisions that are important for tenants to understand. These include:
1. Disclosure requirements: Under the Act, landlords are required to provide tenants with a disclosure statement before entering into a lease agreement. This statement must contain specific information, including the rent, outgoings, and any proposed refurbishment works.
2. Cooling-off period: The Act provides tenants with a cooling-off period of seven days after signing a lease agreement. During this time, the tenant can cancel the lease without penalty.
3. Minimum lease term: The Act stipulates that retail leases must have a minimum term of five years, with an option for the tenant to renew for a further term.
4. Rent increases: The Act limits the frequency and amount of rent increases that landlords can impose on tenants. Rent increases can only occur once every 12 months, and the increase must be in line with CPI.
5. Dispute resolution: The Act provides for a dispute resolution process through the State Administrative Tribunal (SAT). The SAT can mediate disputes and make binding decisions on matters such as rent reviews and lease renewals.
Tips for Tenants
If you are a retail shop tenant, there are several things you can do to protect your interests and ensure that you are getting the best possible lease agreement. These include:
1. Seek legal advice: Before signing a lease agreement, it is important to seek legal advice to ensure that you understand your rights and obligations under the Act.
2. Negotiate: Don`t be afraid to negotiate the terms of your lease agreement with your landlord. Remember, all terms of a lease are negotiable, and you may be able to secure more favourable terms with a little bit of negotiation.
3. Keep good records: Keep copies of all correspondence and documentation relating to your lease agreement. This can include emails, letters, and receipts for payments made.
4. Understand your outgoings: Make sure you understand what outgoings you are liable for under your lease agreement. This can include things like council rates, water rates, and insurance.
Final Thoughts
The Commercial Tenancy (Retail Shops) Agreements Act 1985 is an important piece of legislation that provides protection for retail shop tenants in Australia. By understanding your rights and obligations under the Act, you can ensure that you are getting a fair and equitable lease agreement that meets your needs as a business owner. Remember, seeking legal advice and negotiating the terms of your lease can help you secure the best possible outcome.