Six Months Could Make Or Break Your Retail Lease
When your lease is ending, timing is everything. ⚖️
Miss the six-month window, and your tenant might legally stay longer than you planned.
In this video I reveal the Section 64 rule that catches many landlords out — and how to avoid it.
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Share this video with them — it could save them from a major lease headache.
VIDEO TRANSCRIPT
Ross Millen:
Hi. I might've told you a few months ago about a Section 28 notice when you have a retail lease. And this is the notice that if your tenant has an option to renew and it requires a market rent review on renewal, then you have to give a tenant a notice informing them of that, telling them as a landlord what rent you ought to charge. And then they have the ability to either agree to that, say they don't want to exercise their option or ask you to go to valuation.
Now the other notice that you need to know about when you're dealing with a retail lease is if your tenant has used up all their options, they don't have an option anymore. You can't just let the term of the lease run out because there's a section, Section 64, that says you have to also give a notice between six and 12 months before the lease term expires, notifying the tenant that they don't have any more options. And you have a choice, you can either say, "I, as the landlord, I'm willing to give you a new lease on these terms," or you say, "I, as the landlord, am not willing to give you a new lease."
Now what happens is if you don't know about that notice and you don't give the notice, the lease keeps on going and then the lease doesn't come to an end as far as you, the landlord, are concerned until six months has expired after you finally give the notice. If you are expecting your retail lease to just come to an end, think again. You need to get some advice from us. You need us to draft the Section 64 notice and make sure you serve it in time so you don't surprisingly find that your retail lease goes on much longer than you anticipated.
Remember, I'm Ross Millen from Millens. We are here to help. Contact us and we'll get your retail leasing sorted out.