Everything You Need to Know About Retail Shop Leases

John Gallagher from Argon Law discusses the advantages and benefits of a Retail Shop Lease. By determining whether or not a lease is covered by the QLD Retail Shops Lease Act, a Tenant can ensure that their premises are regulated by and receive the benefits and advantages of the act.

The Retail Shop Leases Act

Do you own or rent a retail shop? Are you fully aware of your obligations under the Retail Shop Leases Act?

Did you know that the Act requires the lessor to provide the lessee with written notice of an upcoming option exercise date? If the lessee has an option to renew or extend, the lessor must give the tenant at least two months’ notice and not more than six months’ notice.

To this end, it is vital that the tenant’s option exercise date and the lessor’s notice dates be clearly diarised upon signing of the lease. Where a tenant exercises an option, the lessor must provide a current disclosure statement within seven days. The tenant can waive this requirement, but let’s assume they don’t.

Once the tenant receives the disclosure statement, the tenant can withdraw their exercise of the option within fourteen days. The right applies whether or not the renewed lease period has commenced.

What happens at the End of a Retail Lease?

Are you approaching the end of a retail shop lease? Unsure of your obligations as a landlord or tenant?

When there is no option in the lease for the tenant to extend, the landlord must provide written notice to the tenant advising of whether they intend to offer an extension.

The landlord must give this notice to the tenant 6 to 12 months prior to the lease’s expiry, if the lease is for longer than 12 months, or between 3 and 6 months where the lease is for less than 12 months.

The notice must contain the terms of the extension, and once provided to the tenant, the landlord cannot revoke the offer for a period of 1 month. If the landlord does not provide notice by the relevant date, the lease automatically extends for 6 months after the date on which the landlord provided notice. During this extended six-month period, the tenant may terminate the lease at any time by giving one month’s written notice to the landlord.

As you will have gathered, retail shop leases can be a complex area. If you’re looking for advice or support regarding your retail shop lease, get in touch with the helpful team here at Argon Law.

Always ensure you seek professional advice for your specific circumstances, the above is intended to be general in nature.