Stream Leasing

Section 46 of the Retail Leases Act 2003 (Vic) requires the landlord to provide the tenant with a written estimate of the annual building outgoings at the commencement of each new accounting period. By default, the accounting period is the twelve months ending 30 June. However, it can be any other twelve month period you choose to adopt. Please note that the Disclosure Statement provided to the Tenant before executing this Lease has fulfilled this obligation for the first year of the Lease.  The Tenant may refuse to pay any outgoings until they are given this estimate.

Unless the lease has been drafted otherwise, the landlord is required to maintain the premises in the same condition as when the lease was entered into, except fair wear and tear, however the landlord is not responsible for maintaining the premises if the need for repair arises out of the tenant’s misuse or the tenant is entitled or required to remove those items at the end of the lease under the lease. The landlord is prohibited on passing on the cost of maintaining the premises under Section 52 of the Retail Leases Act 2003 (Vic). Failing to maintain the premises or rectify a defect as soon as possible after being notified by the tenant of which the landlord is responsible can open the landlord up to claims for compensation by the tenant under Section 54 of the Retail Leases Act 2003 (Vic). If there is damage to the Premises that the tenant didn’t cause, such as storms or fires, then the tenant may not have to pay rent or outgoings for the period of time that they cannot use the premises under section 57 of the Retail Leases Act 2003 (Vic).

Our final letter will provide the landlord with a notice to offer a renewal of lease to the tenant if there are further terms. Please note the law in respect of this notice may have been updated since we provided it to the landlord in our final letter so always contact us before sending this notice. You must notify the tenant in writing of the date after which the option is no longer exercisable at least 3 months before that date.  The Notice must set out the following information, as required by section 28 of the Retail Leases Act 2003 (VIC): The date the tenant must exercise its option to renew. The rent payable for the first 12 months under the renewed term of the lease. If there is a market review of rent due at the start of the option term, the availability of an early rent review. Where the tenant exercises the option to renew but does not request an early rent review, that the tenant is entitled to a cooling off period. Any changes to the most recent disclosure statement provided to the tenant, other than changes to rent. If you do not provide the Notice of option or fail to provide all the information required in the Notice, then the date of exercise of option is instead 3 months after you notify the tenant as required. If you have a managing agent they will normally complete this on your behalf.

The tenant is entitled to request an early rent review where there is to be a market review of rent at the commencement of the option for a further term. The tenant must give you written notice requesting an early rent review within 28 days after you have provided the required Notice of option with the information set out above. The early rent review will be carried out in accordance with the lease market review clause. If the parties cannot agree on the market rent, and a valuer is appointed to determine the current market rent, but the tenant is not notified of the rent determination at least 14 days before the last date that the option to renew the lease may be exercised, then that date is extended to 14 days after the date on which the tenant is notified. If the tenant exercises the option, the term of the lease is extended on the same terms and conditions to that date, unless both parties otherwise agree.