In brief
Market rent reviews under a lease can be a difficult time
for both landlords and tenants.
In a rising and tight rental market, a market rent review
may be unwanted on the tenant’s part, resulting in
challenges to the amount sought by the landlord and
indeed the basis on which the increased rent is claimed.
It is vital for a landlord that the lease itself contains clear
and unambiguous rent review provisions and that all
notices served pursuant to the lease are correct.
In a recent decision of the Supreme Court of New South Wales, a
landlord was stripped of some $800,000 in back rent which the
landlord asserted was owed by the tenant after a market rent
review. The case, American Home Assurance Co v Grimes George
Street Garage Pty Ltd [2007] NSWSC 1400 (7 December
2007) (Grimes), is a reminder of the need for diligence to be
exercised in all aspects of the rent review process, starting with
appropriately drafted rent review provisions. The case is relevant to
all jurisdictions in Australia.
For full details log on to
http://www.blakedawson.com
Content by Blake Dawson
Level 39, 101 Collins Street
Melbourne VIC 3000
If interested in learning more about this update please contact me today!
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