Valuer and retail leases update – outgoings estimate confirmed

In brief

You may recall that in last September, I referred to the VCAT decision in Verraty Pty Ltd v Richmond Football Club Ltd. In that decision, it was determined that if a landlord does not provide a tenant with an estimate of outgoings each year, the tenant is not required to pay outgoings. This has now been confirmed in the Supreme Court appeal of that decision.

What you need to know

Property managers need to ensure that a tenant under the Act is given an estimate of the outgoings in accordance with the Act. This means that an estimate needs to be given before the lease is entered into and annually before the commencement of each year of the term of the lease.

Background