Retail Lease Solutions have represented both landlords and tenants in Mediation at the Retail Tenancy Tribunal.

On one occasion when I attended mediation on behalf of a landlord who it was claimed was owed rent, the tenant attended personally without representation. While the issue of arrears of rent is somewhat black & white, it may have been a different result had the tenant attended with someone, like a retail advisor, who could negotiate a favourable payment schedule on his behalf. Often a landlord has no option but to accept a lengthy payment program with no initial payment down. On this occasion, I played hard ball and the terms were very much in favour of the landlord. I was not convinced that the Statement of Assets and Liabilities supplied by the tenant was entirely true and upon investigation, it was found that the tenant owned a property in Sydney which he did not disclose.

On another occasion, when I attended on behalf of a tenant, the tenant claimed that his business had been ruined by noise and pedestrian disruption while a re-development took place within a shopping centre. Dust, jack-hammering, hoarding up of empty shops, traffic diversions, no communication or assistance from Centre Management, were all put forward, together with photos and correspondence, in support of the claim. The landlord, a large owner of shopping centres, was represented by a lawyer from a large city law firm. In attendance were two representatives from the landlord, their legal advisor, the tenant and myself. An impartial mediator was appointed by the RTU. After several hours of debate and conferences on the phone, the matter was settled in favour of the tenant with a cash pay out and no make good of the premises (estimated at $30,000) was required. The tenant was given a few months to sell remaining stock and to vacate. The tenant was very pleased with the result who had been in dispute for over 18 months.

Often a tenant who finds himself before the Tribunal has lost his business, is financially crippled and depressed. His dreams have been shattered. Tenants turn on anyone to blame – the landlord, the managing agent, the Government. The blame game is an emotional reaction to deflect what really caused the failure – poor research before opening the business, poor time management, poor book-keeping, poor customer skills, unsuitable location, crippling Lease terms, lack of capital and so on. Assistance before you sign the Lease is imperative. Someone to look at the situation objectively & tell it as it is. Family & friends are always supportive but lack the objectivity that an inspiring entrepreneur needs at a time when it most counts.
Retail Lease Solutions will give you the advice you must have to make informative decisions.

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Retail Lease Solutions has recently been asked to intervene in a dispute between a landlord and a tenant over noise. Retail Lease Solutions represented the tenant who complained to the landlord about the level of noise from a motor belonging to a food business which he says was disrupting his business. The tenant has verbally complained to the managing agent over a period of 3 weeks about the noise. The managing agent had contacted the tenant who owned the motor and steps were being taken to reduce the noise level but it was still unacceptable. The tenant was threatening to withhold the rent and to vacate if the noise did not stop. Retail Lease Solutions advised the tenant not to withdraw paying rent as this would be an essential Breach of Lease and may lead to a termination notice being issues by the landlord. A meeting was set up between all parties where it was agreed an Acoustic Engineer would be retained and paid by the tenant who owned the motor and within 7 days modifications would be required to lessen the noise to the satisfaction of the tenant. This was done and the matter was resolved with all sides still on talking terms.

Often the parties interpret clauses in the Lease differently. This can lead to unnecessary correspondence and ill will between landlord and tenant. While Retail Lease Solutions do not offer legal advice, they can interpret the meaning of clauses and with years of experience in the retail industry, advise the likely outcome. For instance, tenants often do not know what the term “Make good” means in the Lease. They do not know the extent of their obligation to make good so when they vacate and attempt to hand back the keys, the landlord is often unsatisfied with the make good by the tenant. Being clear about the scope of works required well in advance of the termination date will resolve most issues. While the landlord may have unreasonable expectations of what the premises was like when it was leased and in what condition the tenant will hand it back in, it is often a case of negotiating through this to the satisfaction of both sides. We always advise tenants to take photos of the premises before the fit out and of any problem areas (like damaged ceiling due to water penetration) so this does not become a source of dispute in future.

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Welcome to our new blog where we will aim to provide informative articles and advice about retail leases based on over 30 years of industry experience. Please feel free to also contact us at our main website for any questions you may have. http://www.arls.com.au

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