This article is from the Australian Property Journal archive
THE Victorian parliament has passed changes to the Retail Leases Act which will make it easier for small businesses to get their security deposits back faster and compel landlords to inform tenants of the proposed rent amount before they extend their lease.
Minister for Small Business Jaala Pulford said the changes, made after consultation with the retail sector, will enable small businesses to be more agile and make their legal obligations easier to understand.
“We’ve listened to Victoria’s small businesses and delivered fairer, more transparent and easier to understand retail leases – and less red tape.
“This is about giving business owners a fair go in tough times and providing certainty for all parties,” Pulford said.
Key amendments to the Retail Leases Act 2003 include:
- Retail tenants must now be informed of the proposed rent amount before they extend their lease.
- Tenants now have more time to consider the terms and conditions of a proposed lease – 14 days, compared with seven days previously.
- Setting a maximum 30-day timeframe for the return of security deposits to tenants – formerly landlords only had to return deposits “as soon as practicable”, which was open to exploitation.
The current practice of landlords passing on the costs of repairs, maintenance and installation of essential safety measures (ESMs) to tenants when mutually agreed to in a lease will continue under the new Act.
The government will continue to engage with businesses outside the retail sector to consider the status of ESMs in other commercial leases.
