Retail Lease Solutions
The autralian experts in retail leasing advice

CAT | Lease Mediation

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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