Retail tenants need to take important steps to prepare for the end of their lease to meet responsibilities and avoid issues. The Victorian Small Business Commission (VSBC) has developed new guidance to help retail tenants prepare for end of lease.
If there are no further options to renew the lease, the landlord must notify you in writing within six to 12 months of the date the lease expires to let you know whether they will offer a lease renewal or not.
If an option exists, the landlord must notify you of the last date you can exercise the option at least three months before that date.
Where the lease isn’t going to be renewed, unless the lease provides otherwise, the tenant doesn’t need to give notice before vacating the premises on the last day of the lease. However, it’s a good idea to start communicating early with your landlord about the process.
Some expired leases are followed by monthly agreements (or ‘holding over’), where you or your landlord can end the tenancy at any given time following a month’s written notice by either party – unless you have a written agreement for a different notice period.
Top end-of-lease tips from the VSBC include: