How something so simple can cost Landlords a lot

//How something so simple can cost Landlords a lot

How something so simple can cost Landlords a lot

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Recently, I had a client who needed to issue a default notice under a REIWA commercial lease.

I said, “Sure, of course”. So, what was the problem?

The REIWA lease (and many lawyer leases) do not allow the service of notices by email. This means a Landlord loses several business days waiting for the post before the default period starts.

The REIWA lease in particular deems service of the notice to be on the date of delivery (most lawyer leases would deem service to be 2 or 3 business days after the date of posting). In a world where registered post can now take 4 business days or longer, the REIWA lease just does not deliver.

This simple issue can cost Landlords a lot. The longer a defaulting tenant is in possession, the greater the chance that other defaults will occur, defaults that cost the Landlord money over and above the amount of any security. This could include relating to damage to the premises, lack of maintenance, make good, insurance, non-payment of rent and outgoings and non-compliance with laws.

This is particularly the case if the tenant is defaulting due to financial problems. The prospects of recovering damages from the tenant or guarantor in these circumstances can be limited.

The solution often is to terminate the lease as soon as possible without delay, which highlights the problem of a period of delay while waiting for the post.

To find out more or if you have any queries relating to your commercial lease, please do not hesitate to contact me on 0408 954 570 or at tcockman@justicelegal.com.au.

2020-08-20T20:09:55+08:00

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