• 5 mins read
Retail tenants and landlords should be aware that Victoria’s Retail Leases Regulations 2013 expired on 16 April 2023 and the Victorian Government has since updated them.
While the new 2023 regulations do not have many substantive changes compared with the former 2013 regulations, there are new disclosure statements that were made available on 1 December 2022. When entering or renewing a retail lease, landlords must give their tenants a disclosure statement, which outlines essential lease information (e.g. the term of the lease, occupancy costs) so the tenant can understand, at a glance, the key elements of the lease.
Following is a summary of the details tenants and landlords need to know.
The new Retail Leases Regulations 2023 complements the Retail Leases Act 2003 (the Act). If you are entering into a retail lease, you need to ensure you are aware of and understand these regulations.
Their main objectives are to:
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- Provide the forms of disclosure statements which landlords must provide to their tenants and how they are to be used.
- Provide details on a maximum occupancy cost, including rent, outgoings, and other costs in a lease to exclude certain retail premises from being covered by the Act.
- Set out a detailed formula for charging the tenant outgoings based on the size of the premises compared with other premises in the same structure.
The Victorian Small Business Commission offers a fact sheet for landlords and information brochure for tenants on their web site.
Investing in a commercial property in Australia is a great way to diversify your investment portfolio, and when you partner with an experienced property advisor or buyer’s advocate, your asset will remain compliant with any regulatory changes and updates.
At TPA, our team are committed to helping our clients with any queries they have about their commercial property portfolio. Contact us if you require assistance.