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Leon, Solicitor
Category: Australia Law
Satisfied Customers: 44657
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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We set up a small music school in Oct 2009 We rented the premises for $1334 a month

Customer Question

We set up a small music school in Oct 2009
We rented the premises for $1334 a month + gst We paid our rent regularly through our book keeper .
In 2014 we then was given noticed of a 4% rise in the rent each yr after the first yr(compounded) and also noticed other outgoings that were not previously asked for.
On reviewing the "lease" we found we didn't have one just a letter of acceptance.We asked the realestate agents and they could not provide us with one either.The letter of acceptance form (not signed)stated that we had a 2 yr lease period with a 4 % increase after the first yr and an option after 2 yrs based on a market review
My question is we received NO document outline outgoings (disclosure document) and we received no notice in regards ***** ***** rent changes until the lumped them on us in 2014
We tried to renegotiate a lease to go on but could not as I was not willing to absorb all the rises (total Of 10K ) that they lumped onto us.
It has been over 6 mths since we
Submitted: 2 years ago.
Category: Australia Law
Expert:  Leon replied 2 years ago.
Good Afternoon, My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question. Please understand this is not legal advise Please understand this is not legal advise but a guide to assist you.What does the lease say? This is what you can rely in. If the rent increases are 4% on the anniversary of the lease then the increases are correct. If the lease says you pay for the outgoings you are liable If they have not been charging you it does not mean they lose the right to charge you. They may have forgotten but under the lease this does not mean they have waived their right to collect them. There should be a non waiver clause in the lease. As a school it is not retail and there is no requirement for a disclosure statement. Are you saying that you have not signed a lease nor the letter of acceptance? If that is the case, on what document are they relying on to ask for rent and outgoings?
Customer: replied 2 years ago.
We have a single page "offer and acceptance to lease "form not signed.We received no lease and the real-estate firm could not find one for our copy when requested yet they continue to say "the lease say this"
The music school was also retail as we sold items as well as lesson.
I thought any commercial lease would require a disclosure document
It outlines that there was to be a 2yr term with 4% after 12 mths then market rate review
Expert:  Leon replied 2 years ago.
Good Evening, You are only liable to pay what that says.By taking possession based on that document and paying rent based on that you are bound by it. If it does not require payment of outgoings you do not have to pay. You are only bound to pay rent at the first anniversary rent increases by 4% if you take over an option then you get a market review for a new lease. This is all you have to abide by. All leases in Victoria are covered by the retail leases Act. is some further information. cannot be asked to pay more than on that sheet of paper. I hope this makes sense and is of assistance. If there is nothing further thank you for using my services. If I have missed anything, or you have any further questions please let me know If there is anything else in the future please do not hesitate to ask. Please do not forget to leave positive feedback. RegardsLeon