Do you have a retail store in Qld? Be aware of changes to the Retail Shop Leases Act!
On the 10th of May 2016, amendments to the Retail Shop Leases Act 1994 (Qld) were passed, implementing committee recommendations and increasing consistency of the Act with those of other States. The date that the amendments will take effect has not yet been announced, but it is likely to be six months after assent – so now is the perfect time to amend your retail leases in QLD in preparation for the changes.
Some key changes that will apply to the Act include:
- The Act will not apply to leases with large floor areas of more than 1000m2 or to leases for non-retail use in shopping centres where 25% or less of the total lettable area is used for retail purposes.
- Updated disclosure requirements.
- Implementation of market rent reviews, generally for the benefit of the tenant, who may request an early determination of market rent prior to exercising an option to renew.
- In calculating total area of the centre, for the purpose of calculating “apportionable outgoings” to be paid by tenants, landlords can no longer include areas within a common area of a centre used for a “prescribed purpose”.
- No obligation on tenant to provide monthly turnover certificates and annual audited statements of turnover where tenants are required to pay turnover rent.
- Where a lease requires that tenants to pay for promotion and advertising, the landlord must make a marketing plan and audited annual statement accessible to the tenant.
Source: Hopgood Ganim