Commercial tenancy agreements are contracts between commercial landlords and tenants that outline the terms and conditions of a commercial lease. In Western Australia, the Commercial Tenancy (Retail Shops) Agreements Regulations 1985 (WA) govern these agreements and set out specific rules and regulations that must be followed.
The purpose of these regulations is to provide a framework for a fair and transparent relationship between the landlord and tenant. The regulations apply to all retail shops in Western Australia, and they define a retail shop as any premises that are used solely or mainly for the sale or hire of goods or services to the public.
Some of the key provisions of the Commercial Tenancy (Retail Shops) Agreements Regulations 1985 (WA) include:
1. Minimum lease term: A retail shop tenancy must have a minimum lease term of five years unless both parties agree to a shorter term in writing.
2. Rent reviews: The rent can be reviewed during the lease term, but the landlord must provide proper notice before doing so. The regulations require that the notice must be in writing and given at least 60 days before the proposed start date of the new rent.
3. Disclosure requirements: Before entering into a commercial tenancy agreement, the landlord must provide the tenant with a disclosure statement that outlines all the essential terms and conditions of the lease. This includes details regarding the rent, rent reviews, length of lease, and any outgoings.
4. Security bonds: A landlord can require the tenant to provide a security bond, but the bond cannot exceed the equivalent of three months` rent. The regulations also stipulate that the landlord must hold the bond in a separate trust account and provide the tenant with a receipt.
5. Assignment and subleasing: The regulations outline the requirements for assigning or subleasing a retail shop. A landlord cannot unreasonably withhold consent for an assignment or sublease, and any conditions imposed must be reasonable.
In conclusion, the Commercial Tenancy (Retail Shops) Agreements Regulations 1985 (WA) provide a framework for a fair and transparent relationship between commercial landlords and tenants in Western Australia. Whether you are a landlord or a tenant, it`s important to understand these regulations and ensure that you comply with them. Failure to do so could result in legal disputes and potential financial losses. Therefore, it`s advisable to seek legal advice before entering into any commercial tenancy agreement.