Retail leases reform in NSW

Retail tenants in New South Wales will get some of the same protections as those enjoyed by their residential counterparts under planned NSW Government reforms to the NSW Retail Leases Act.
If passed, the retail lease changes will provide more certainty in the relationship between retailers and landlords encouraging a better business environment.
Under the proposed new scheme, landlords will no longer need to set up a separate account in which to deposit retail tenant's bond security. They will simply need to lodge with the bond scheme and then, providing the retail tenant fulfils their lease obligations, they will receive their money back at the end of the lease.
In other changes, lease provisions can now prevent or limit compensation if a written statement advising lessees of details of a specific anticipated disturbance is given to the lessee before the lease is entered into, with a specific description of the nature of the disturbance and an assessment of the likelihood of the disturbance. Generalised statements that disturbances may occur without setting out details are now excluded.
In terms of new store fitouts, the maximum amount payable must now be agreed upon before a lease is entered into. Lessees must be informed in writing of fitout standards or lessees will not be liable.
Proposed changes to sections relating to advertising and promotion statements require that lessors detail all promotion expenditure and unspent lessee contributions. Only expenditure relating to the building or the centre in which the retail shop is located can be itemised in outgoings and advertising and promotion estimates or statements.
For more: www.retail.nsw.gov.au or call the NSW Goverment's retail Tenancy Unit on 1300 795 534.