How to terminate a commercial lease for non-payment of rent

or other breach.

RP Emery & Associates Solid legal protection without the expense since 1990

In most Australian states, a Commercial Lease is used for properties such as warehouses, offices or factories. The information that follows outlines in very simple terms how to handle a breach under Australian Law.

If your tenant…

stops paying the rent; or

breaches other terms of the lease.

To validly end the lease;

and regain possession of your property.

You must follow the rules

In Australia, Leasing is covered by state specific legislation.

These laws give instruction on how a Landlord should deal with a breach.

In addition, your lease contains terms that describes how breaches will be handled.

Your lease cannot undermine

the minimum standards for

dealing with breaches set out

in the legislation and case

law, but can add to them.

The first step is to…

Issue your tenant with a Breach Notice that details:

the nature of the breach; and

requests that the breach is remedied within a reasonable time.

You can also claim compensation if necessary.

Within the given timeframe, the landlord can terminate the lease in a number of ways.

If the tenant does not comply

By issuing another notice terminating the lease and asking the tenant to vacate the property;

By re-entry;

Leases usually include a right of re-entry allowing the lessor to reclaim the property if the lessee fails to abide by the terms of the lease.

By initiating Court proceedings.

Going to Court can be expensive and the outcome is often uncertain.

Increase your chances of success by following the leasing laws to the letter and keeping an accurate paper trail.

Interested to know more?

View a more detailed article on handling a breach and download a Sample Breach Notice for NSW from http://bit.ly/1ll2esT

This information in this presentation is of a general nature and does not include or constitute legal advice.