Leasing a Commercial Property » AussieLegal

29 October 2024by Naomi Cramer


In addition to the rights and obligation discussed you have the right to:

  • quiet enjoyment of the premises during the term of the lease, subject to the landlord’s rights to inspect the property, as set out in the lease;
  • the landlord repairing any structural problems, not caused by you;
  • the landlord paying all outgoings for the property (even if you are liable to repay these) as they fall due;
  • access to any common areas or services of the building of which the premises forms part;
  • the landlord maintaining any common areas or facilities, including lifts, toilets, air conditioning etc; and
  • the landlord obtaining the mortgagee’s consent and registering the lease.

 

The most common default by tenants involves the nonpayment of moneys payable under the lease. If you are 14 days or more late making payments due to the landlord, the landlord can demand possession of the premises or enter and take possession of the premises. In most cases you will also become liable for interest on those moneys.

If the tenant breaches any terms of the lease the landlord has the right to issue a written notice advising details of the breach and a time during which the default must be rectified. The lease will set out what constitutes a default and the consequences of the default.

If you get a notice of default, try to comply with it or approach your landlord to discuss a possible solution. If you can’t see any way to fix the breach at least you can discuss moving out on your terms and paying back an agreed amount of arrears without the landlord suing you.

It is unusual for a landlord to enter and take possession of the premises. It is more prudent for them to apply to the court for an order for possession. If a landlord does exercise its rights, without an order of the court, it may be responsible for any damage caused to the tenant.

If you have breached the terms of the lease and the landlord takes possession of the premises you can apply to the court for ‘relief against forfeiture’. You will need the assistance of a solicitor to take this type of action. The court will make orders reinstating your tenancy, if you can demonstrate you have or can remedy the breach. This usually means being able to pay the arrears. You will be liable for the landlord’s costs of any enforcement proceedings or for the application for relief against forfeiture, unless the landlord is completely mistaken.

It is important to remember that a lease provides that the tenant is liable for the landlord’s costs enforcing the lease if the tenant is in breach. 

At the end of the lease, you are obliged to vacate the premises and return it to the landlord in the condition required by the lease. If the lease is terminated the landlord has the right to remove your goods, fixtures and fittings and dispose of, or charge you for storage of those items.

If the landlord allows you to remain in possession of the premises at the end of the term, without giving you a new lease, you become a monthly tenant. Either party is required to give the other one month’s notice to terminate the monthly tenancy.

Some complexes have building rules. You will be given a copy of these rules and expected to comply with them. If the premises are part of a strata title complex you will be premises required to comply with the strata by laws and the strata levies will be included in the outgoings.

The lease will also set out what constitutes a default and the consequences of the default. If the tenant breaches any terms of the lease, the landlord has the right to issue a written notice. Such notice shall advise details of the breach and a time during which the default must be rectified.

If you get a notice of default, try to comply with it or approach your landlord to discuss a possible solution. If you can’t see any way to fix the breach, at least you can discuss moving out on your terms and paying back an agreed amount of arrears without the landlord suing you.

The most common default involves the nonpayment of moneys payable under the lease. If you are 14 days late or more in making payments, the landlord can demand possession of the premises or enter and take possession of the premises. In most cases you will also become liable for interest on those moneys.

However, it is unusual for a landlord to enter and take possession of the premises. It is more prudent for them to apply to the court for an order for possession. Moreover, if a landlord does exercise their rights, without an order of the court, they may be responsible for any damage caused to the tenant.

If you have breached the terms of the lease and the landlord takes possession of the premises, you can apply to the court for ‘relief against forfeiture’. You will need the assistance of a solicitor to take this type of action. The court will make orders reinstating your tenancy if you can demonstrate you have or can remedy the breach. This usually means being able to pay the arrears. You will be liable for the landlord’s costs of any enforcement proceedings or for the application for relief against forfeiture, unless the landlord is completely mistaken.

It is important to remember that a lease provides that the tenant is liable for the landlord’s costs, enforcing the lease if the tenant is in breach. 



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by Naomi Cramer

Naomi is a highly skilled NZ Court lawyer with more than 25 years & is Family Law Expert in Child Care Custody Disputes.

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