Retail Lease Solutions
The autralian experts in retail leasing advice

CAT | Lease Disputes

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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