A retail lease defines the relationship between a landlord and a tenant of retail premises. It is important to fully understand your rights and responsibilities as a retail tenant or landlord.
Unless you have experience in commercial/retail leasing, we recommend you seek professional legal and/or financial advice before entering into an agreement.
Retail/commercial tenants are normally required to provide the property owner with some form of security such as a bond or bank guarantee. This is to cover any outstanding debts, damage or other issues with the condition of the premises at the end of a tenancy. You are not required to lodge retail or commercial bonds with the Rental Deposit Authority (RDA).
Ending a lease
Generally, your lease will determine the requirements for vacating the premises or renewing your lease. Your lease agreement should outline timeframes for a notice to vacate or offer to extend your lease.
When a lease ends it is normal for a tenant to return the premises to the condition it was in when the lease started. This generally includes such things as:
- removal of fixtures and fittings and
- repairs of any damage caused throughout the tenancy.
The tenant is usually responsible for these costs. However, you should review your specific lease agreement for any requirements relating to vacating the premises.
We recommend retail tenants and property owners first attempt to resolve disputes negotiating with each other. If unsuccessful, either party may ask Consumer, Building and Occupational Services to assist to negotiate a solution. If needed, seek professional legal advice. Either party may refer the matter to a court for hearing.