What if a tenant wants to get out of a retail lease?
A retail lease is a legally binding document and therefore both parties must agree to end a lease. It may be that the landlord does not wish to end the lease, in which case, the tenant may be responsible for all of the landlord’s reasonable out of pocket expenses in finding a new tenant. These costs may include rent until the premises are re-let and the agent’s re-letting fees, subject to a landlord’s duty to mitigate loss. The actual amount the tenant is responsible for is a matter of negotiation between the parties. If a dispute arises, either of the parties may refer the matter to the Small Business Commissioner for mediation. For further details, contact the VSBC on (03) 9651 9316.
