It is important to be aware of when a retail lease without further option to renew is set to end.
For retail leases without an option to renew, landlords are required to provide at least 6 months (but no more than 12 months) written notice before the lease term ends. This notice must stipulate whether the landlord is offering a renewal of the lease (and the specific terms of such lease) or that no offer of renewal is proposed.
Failure to provide this initial notice places the landlord in a precarious position whereby the lease is effectively extended indefinitely until at least 6 months from the date in which the landlord eventually does give such notice. During this extended period, the tenant is able to terminate the lease at any time after the term of the lease ends. That is, the tenant may remain at the premises beyond the prescribed end date of the lease (until at least 6 months after proper notice is provided), but may also end the lease at any time.
Need Further Help?
If you are a landlord unsure as to whether you are required to provide notice, or a tenant who has been asked to vacate leased premises without notice, please do not hesitate to contact our firm at (03) 9548 5500.
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