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  • #972854
    morpheyous
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    Can a landlord in a commercial tenancy agreement ‘lock’ you out of your shop for being late in the rent without warning or court order?

    Thanks.

    #1058247
    abacus
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    In Qld YES

    This is the relevant clause from the REIQ Commercail Tenancy agreement.

    Have a read through your lease.

    9. DEFAULT AND TERMINATION

    9.1 Default
    The Tenant defaults under this Tenancy if:
    (1) the Rent or any money payable by the Tenant is unpaid for 14 days;
    (2) the Tenant breaches any other term of this Tenancy;
    (3) the Tenant assigns its property for the benefit of creditors; or
    (4) the Tenant becomes an externally-administered body corporate within the meaning of the Corporations Law.

    9.2 Forfeiture of Tenancy
    If the Tenant defaults and does not remedy the default when the Landlord requires it to do so, the Landlord may do any one or more of the following:
    (1) re-enter and take possession of the Premises;
    (2) by notice to the Tenant, terminate this Tenancy;
    (3) by notice to the Tenant, convert the unexpired portion of the Term into a tenancy from month to month;
    (4) exercise any of its other legal rights;
    (5) recover from the Tenant any loss suffered by the Landlord due to the Tenant’s default.

    The bold bit means…yes the landlord has the right to lock you out

    #1058248
    morpheyous
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    Thanks for your reply,

    I must say that is totally ‘rude’ If anyone knows of the WA situation It would be appreciated.

    #1058249
    MyGreatIdea
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    morpheyous, post: 71895 wrote:
    Thanks for your reply,

    I must say that is totally ‘rude’ If anyone knows of the WA situation It would be appreciated.

    Hi Peter,

    The law is rude? or the reply was rude? I felt the reply was extremely informative. Perhaps if you gave us some more details in your profile, we would have known you were referring to WA laws.

    Surely there must be a clause in your lease that refers to nonpayment of rent? This site http://www.smallbusiness.wa.gov.au/leasing-a-commercial-premises/ should be a good starting point for you to find answers.

    Wendy

    #1058250
    AdServe
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    hehe yep! Some years ago I owned a struggling cafe and it was almost a weekly occurrence at one stage… Landlord padlocks the door, I go there talk about needing to be able to sell my coffee and food to be able to pay my rent.. Landlord removes padlock until next time..

    Its not Rude!

    Your best way to deal with it is to either

    Show them that you are moving in the direction of being able to pay on time and let them know that if you cant get into your premises that they will set of a chain of events that spiral into bankruptcy with them not getting a cent. They dont want to stop you working they just want there money.

    Or

    Show them that your on your way down…. ask them to let you out of the lease and write off whatever is owing..

    I did a combination of both and yeah worked for me.

    #1058251
    abacus
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    I am sorry if you thought my reply was rude :( It is just a fact of life.

    PLEASE read your lease….every lttle clause…It outlines what you can and cannot do. In Qld a standard lease has the clause as I pasted.
    If after reading your lease, you feel you have been unjustly locked out….then you can contact your solicitor and try and get some sort of compensation.

    By the way lockouts do not have to just be lack of rent payments. We had one store in a centre where I had my shop, get padlocked because the centre management found out they were living in the shop :( (They had actually been evicted from their house through lack of rent and were sleeping in the back room of the shop) This was against another clause in the lease.

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