Do you lease premises for your business? Many business owners do not realize that when they sell their business and assign their lease, they may remain liable to the landlord for many years after the assignment. If the buyer (the new business owner) can't pay the rent then the landlord may come looking for the previous tenant to cover the loss. Is that you?Many leases actually provide that an assignment of the lease does not release the previous tenant from liability to the landlord. Don't despair! Read to the end of this article where we make reference to some legislation that may assist if you are a retail shop tenant.
If you are a commercial tenant you probably already know that retail shop tenants have a higher level of protection than do other commercial tenants. A retail shop landlord is restrained from doing certain things.
You may be a retail shop tenant even if you do not operate a retail shop. It is essential that you are able to determine if you are entitled to the benefits of the act. A link to the Retail Shop Leases Act is set out here.
Landlords are not permitted to pass on the cost of preparing a lease to their retail shop tenant.
There are rules about the maximum proportion of outgoings that a landlord can ask a retail shop tenant to pay.
The landlord is restricted in the way that increases in rental can be imposed.
There are other benefits also.