Changes to the Retail Leases Act 2003 are set to make it easier for small and medium-sized business owners to get security deposits back faster, while also making legal obligations easier to understand.
Key Act amendments include:
- Retail tenants must now be informed of the proposed rent amount before they extend a lease
- Tenants now have 14 days to consider the terms and conditions of a proposed lease (compared with seven days previously)
- A maximum 30-day timeframe will be set for the return of security deposits to tenants.
“We’ve listened to Victoria’s small businesses and delivered fairer, more transparent and easier to understand retail leases – and less red tape,” said Minister for Small Business, Jaala Pulford.
Additionally, small-to-medium business tenants are reminded that the Victorian Government's Commercial Tenancy Relief Scheme and the Commercial Landlord Hardship Fund remain in place during the COVID-19 pandemic.
The Commercial Tenancy Relief Scheme enables rent reductions for small-to-medium business tenants whose income has been affected by COVID-19, and provides a freeze on evictions for non-payment of rent for businesses with an annual turnover under $50 million (participating in JobKeeper).
The Commercial Landlord Hardship Fund offers grants of up to $3,000 per tenancy to eligible landlords.
For more information
Victorian Premier (media release): Fairer Lease Conditions For Small And Medium Businesses
Business Victoria: Commercial Tenancy Relief Scheme
Business Victoria: Commercial Landlord Hardship Fund