As if Victorian retail landlords didn’t have enough to contend with! Now they must familiarise themselves (and quickly) with the new amendments to the Victorian Retail Leases Act 2003.
Here are the top 7 changes that you need to know right now:
The disclosure statement must now be provided at least 14 days prior to entry into the lease (previously 7 days).
The landlord’s disclosure statement on a renewal of lease must document any changes to the previous disclosure statement given to the tenant and contain information which is current and not older than 3 months.
Changes to Proposed Leases
A landlord must notify a tenant of changes between versions of leases provided to the tenant. New (and hefty) financial penalties will be imposed on a landlord that breaches this obligation
Exercising an Option
Additional prescribed information must be included in a landlord’s ‘option’ notice (which advises the tenant as to the latest date by which the tenant can exercise its option).
Market Rent Review
There are new ‘early’ market rent review provisions which enable a tenant to call for a market rent review prior to exercising its option.
‘Cooling Off’ Provisions
There are new ‘cooling off’ provisions which give a tenant a 14 day cooling off right (from the date the tenant exercises its option) in circumstances where the tenant did not call for an ‘early’ market rent review.
Essential Safety Measures (ESMs)
There is clarity once and for all that the landlord’s costs on account of essential safety measures can be recovered if the lease permits recovery.
Return of Security Deposits
Security deposits must now be returned to the tenant within 30 days of the end of the lease.
The Property Team at Kalus Kenny Intelex continues to help many landlords and tenants through this process.