Commercial Lease Dispute Lawyers — Melbourne, Sydney & Brisbane

Can a landlord increase rent during a commercial lease?

A landlord cannot simply decide to increase your rent, any increase must be expressly permitted by the lease itself. Most commercial leases build in rent review mechanisms, and these typically take one of three forms:

• Fixed percentage increases at agreed intervals
• CPI adjustments tied to inflation
• Market rent reviews at specified points during the term

Outside of what the lease permits, a unilateral rent increase is a breach. Where the Retail Leases Act applies, additional rules govern both the timing and conduct of market rent reviews, adding another layer of protection for tenants. If your landlord has increased rent in a way that doesn’t appear to be covered by your lease, do not agree to it in writing before getting legal advice.

What is the Retail Leases Act and does it apply to my lease?

The Retail Leases Act is state-based legislation, meaning it isn’t uniform across Australia, and whether it applies depends on where your premises are located. Where it does apply, it gives retail tenants a layer of protection above standard commercial lease law, including:

• Additional disclosure obligations on landlords before signing.
• Minimum lease terms in certain circumstances.
• Access to low-cost dispute resolution through bodies like the Victorian Small Business Commission.

Coverage depends on your state, business type, and premises. Many tenants don’t realise these protections exist and this is why we need to know it at the earliest.

What can I do if my landlord breaches the lease agreement?

If your landlord breaches the lease agreement, it doesn’t leave you without options, but how you respond is crucial. Acting without proper process can actually weaken your position. The steps to follow are:

• Issue a formal written breach notice identifying the specific breach clearly
• Allow a reasonable timeframe for the landlord to remedy the breach
• If unresolved, seek mediation through the relevant small business commission 
• Where mediation fails, commence proceedings at VCAT or the appropriate court

Where the Retail Leases Act applies, mediation is often mandatory before proceedings can be filed. Document everything from the beginning. A paper trail is your strongest asset in any lease dispute.

How are commercial lease disputes resolved?

Not every commercial lease dispute ends up in court, and in most cases, it shouldn’t. Commercial lease disputes are resolved using several mechanisms, on the basis of the nature of the dispute and the jurisdiction.  Negotiation is always the starting point and often the quickest and most cost-effective path to a practical outcome. 

Where that fails, mediation through bodies like the Victorian Small Business Commission (VSCB) becomes the next step. This step is mandatory in certain circumstances under the Retail Leases Act. If mediation fails to resolve things, VCAT offers an accessible tribunal process for retail lease matters. Complex or high-value disputes may require Supreme Court proceedings. Where you start and how you handle each stage is significant.