Changes to the Retail Leases Act
The Retail Leases Amendment Act 2020 (Vic) came into effect on 23 September 2020 (except for Division 2 of Part 3).
This Act changes the obligations of landlords and tenants of retail leases. Changes have been made to the provisions relating to:
- Essential Safety Measures: A landlord will be able to agree with a tenant to pass on these costs;
- Disclosure Statements: A landlord needs to provide a disclosure statement earlier and provide a more detailed disclosure statement on renewal;
- Security Deposits: Must be returned within 30 days;
- Cooling-off: A tenant has a 14-day cooling off period after exercising an option to renew, and;
- Early rent reviews: A tenant can seek a market rent review before exercising an option to renew.
These changes apply to current leases and new leases.
Contact Sarah Ward, Accredited Specialist Commercial Tenancy, for advice on retail leasing.