Pitfalls when objecting to a rent review notice from a landlord.

September 7, 2011

in Property

A recent decision of the High Court has found that a Tenant’s objection to a Rent Review Notice from the Landlord increasing the Tenant’s rent did not correctly invoke the disputes procedure under the provisions of the ADLS form of Deed of Lease.

The notice from the Tenant objecting to the rent review did not specify the annual rent proposed by the Tenant and as such the Tenant had not objected to the rent review correctly. The Tenant was therefore bound by the Landlord’s original notice as if the Tenant had not objected.

This has potentially significant implications for Tenants when receiving notices from Landlords advising of a rent review and of the Landlord’s proposed market rent. Tenants should be aware that there are strict time limits to respond to the Landlord’s notice and in light of the recent High Court decision the content of that notice must be carefully considered.

We always recommend that in the case of any pending or actual rent review you seek legal advice. If you have any queries in relation to rent reviews for commercial premises please contact us to discuss.

Paul Farry
09 379 0055 or 03 477 8870

The information contained in this publication is intended as a guide only.  It does not constitute legal advice and should not be relied upon as such.  Professional advice should be sought before applying any of the information to particular circumstances.  While every reasonable care has been taken in the preparation of this publication, Farry and Co. does not accept liability for any errors it may contain.

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