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ARTICLE · 13 MARCH 2017

Rain causes pain for retail tenant

Tenants should consider the landlord's maintenance obligations when negotiating the contractual terms of the lease.

AustraliaReal Estate and Construction

IN BRIEF - TENANT HELD TO HAVE NO CONTRACTUAL RIGHT TO TERMINATE LEASE

The Queensland Civil and Administrative Tribunal (QCAT) held in Broben & Anor v Hatfield [2016] QCAT 341 that a retail tenant, who abandoned the premises due to ongoing water leakage problems, had repudiated the lease. This case shows that tenants would be wise to consider the landlord's maintenance obligations when negotiating the terms of the lease.

TENANT VACATES PREMISES BEFORE LEASE EXPIRES FOLLOWING ONGOING LEAKAGE ISSUES AND THEN SIGNIFICANT RAIN DAMAGE TO STOCK

The tenant conducted a business of selling aquarium fish and aquarium products from retail premises at Mermaid Beach. The premises had a history of water leakage issues following heavy or ongoing rain. The tenant reported the problems to the landlord's agent on several occasions, but was not satisfied with the responses received, nor was the issue substantially rectified by the landlord.

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