Leases

A lease is a formal agreement between a landlord and a tenant granting rights to a tenant to occupy premises owned by the landlord.

Leases can cover a wide variety of properties including private residences, retail shops as well as commercial and industrial premises.

The laws governing the rights and obligations of the parties to a lease can be found in various legislation including the Retail Leases Act 1994, The Real Property Act 1900 and the Residential Tenancies Act 1987.

Recently amendments to both the Retail Leases Act and the Residential Tenancies Act and the introduction of new laws dealing with smoke alarms has meant significant changes to the rights and obligations of the parties as well as changes to the way parties negotiate terms and conditions of a prospective lease.

Some amendments to the Retail Leases Act include:

Pre-lease disclosure;
Types of premises governed by the Retail Leases Act;
Retail lease bond scheme;
Assignment of lease; and
Resolving disputes

The changes in the Residential Tenancies Act 1987 have come about by the introduction of the Building Legislation Amendment (Smoke Alarms) Act 2005.

This Act basically imposes an obligation on all owners of premises including but not limited to private homes, home units, hostels, hospitals and aged care facilities to ensure that smoke alarms are installed in areas on the premises containing bedrooms.
 
Some amendments to the Residential Tenancies Act 1987 include:

1. Landlords are responsible for the installation of smoke alarms;

2. Landlords have the right upon giving two (2) days notice to a tenant to access the property for the purpose of installing a smoke alarm;

3. If the smoke alarm is battery operated the battery MUST be changed at the commencement of each new tenancy;

4. Unless they are physically unable the tenant is responsible for the replacement of the battery in the smoke alarm during the term of the tenancy; and

5. The agents/landlords property condition report must include a specific reference to the smoke alarm.

Quick Tips

1.Always seek professional assistance, prior to entering into a lease;

2. Landlords and tenants alike should protect their rights by ensuring that the lease is in place prior to taking occupation of the premises;

3. Ensure that you comply with the recent changes in the law;

4. The parties should negotiate terms and conditions that are reasonable; and

5. If a dispute arises, always attempt to resolve it amicably between the parties in the interest of minimising costs.

Contact an expert property lawyer at Benjamin and Robinson Solicitors on (02) 9547 1733. Alternatively send your enquiry online now and a property lawyer will contact you soon.