BUSINESS INFORMATION
Commercial Tenancy Act
Understanding the Commercial Tenancy (Retail Shops) Agreements Act 1985 is vital if you lease premises for a retail business in Western Australia.
In Western Australia, most retail shop leases are regulated by the Commercial Tenancy (Retail Shops) Agreements Act 1985.
Having an understanding of the Act is essential if you intend to lease premises to operate a retail business.
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Lease duration and options to renew
- Ensure the lease term is sufficient to recover your investment and achieve profitability.
- Once a lease expires, the landlord is not obligated to renew it, potentially requiring relocation.
- Amendments to the Act from 1 January 2013 impact leases entered into after this date.
Retail shops covered by the Act
1. Applies to premises with a lettable area of 1000 m² or less:
- Located in retail shopping centers or used primarily for retail purposes.
- We conduct specified businesses, such as dry cleaning, hairdressing, or video rental.
2. Excludes leases for vending machines, ATMs, or publicly listed companies
Purpose of the Act
[3:29 pm, 29/11/2024] Chandni: 1. Regulation: Ensures transparency and fairness in retail shop leases.
2. Support: Offers mediation and low-cost dispute resolution services.
3. Prohibition: Prevents misleading or unconscionable conduct.
4. Key Focus:
- Disclosure requirements for landlords.
- Standardized rent review processes.
- Protection against excessive landlord expenses.
- Landlord Obligations
Landlords must provide the following at least seven days before entering a lease:
- Disclosure statement.
- Tenant guide (attached to the lease).
- Proposed lease terms.
- Operating expenses budget.
Trading hours
The Act prohibits clauses mandating specific opening hours..
Resolving disputes
- Disputes may be referred to DCK Enterprise for mediation.
- Some matters may proceed directly to the State Administrative Tribunal (SAT).
- Certificates from the Small Business Commissioner may be required for SAT applications.
Useful resources
Leasing Business Premises: A Commercial and Practical Guide
Offers insights into key considerations when leasing business premises, helping you navigate common challenges and avoid mistakes.
Negotiating Better Leases: Practical Guide
Highlights important aspects of lease negotiations, including overlooked details that may lead to issues during the lease term.
Common Questions About the Commercial Tenancy Act
Provides guidance for landlords and tenants regarding leases signed after 1 January 2013, covering essential aspects of the Act.
4. Department of Mines, Industry Regulation and Safety Website
Access detailed information and tools about commercial tenancy agreements to support your decision-making process.
More information
- Visit the Department of Mines, Industry Regulation and Safety for additional resources.
SMALL BUSINESS HELPLINE
For more information
- Call: 000 000
- Appointments: Schedule online or phone consultations.
Other helpful resources
- Tendering and Contract
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