Retail shop leases in WA
The Commercial Tenancy (Retail Shops) Agreements Act 1985 (the Act) regulates retail and other commercial tenancies The Act principally focuses on the need for transparency of information and fairness in the contract by:
- requiring a disclosure statement by the Owner (lessor) to the tenant (lessee);
- establishing a consistent and fair process for rent reviews;
- giving the tenant an entitlement to a minimum lease period of up to 5 years;
- regulating the distribution of specified landlord expenses to tenants; and
- providing access to alternative lower cost mediation and dispute resolution mechanisms offered by the State Administrative Tribunal.
It is important for landlords and tenants of retail premises and other businesses covered by the Act to establish the impact of the Act on their lease agreement.
The Act covers parties involved in retail/commercial leases for shop premises
- up to but no greater than1000 square metres in area;
- tenanted by private businesses but not public companies and their subsidiaries;
- tenanted by non-retail businesses where located in a shopping centre (of 5 or more retail shops or specified businesses); and
- where the business carried out by the lessee is a specified business such as a dry cleaning, hairdressing, beauty therapy, shoe repair, video store or some petrol station agreements.
The Act
Access to the Commercial Tenancy (Retail Shops) Agreements Act 1985, is available through the State Law Publisher's website.