QLD Moving to home country due to health-Commercial lease

[Arlu]

We are 1 year into a 2 year lease and my dad has suffered a major stroke to the point where he needs 24/7 care and hubby and i are relocating our home and family to care for him.

Our business is a NZ art & tattoo business and requires my husband to be there in order for it to operate as he is the only fulltime artist. We have a casual artist but he is unable to work fulltime. This has all happened inj the last 3 weeks and i am currently with my dad while my husband completes the current bookings he has.

Unfortnately once my dad is discharged from hospital my hubby will be needed to move dad around and help with his personal care.

I have looked through the retail lease bt cant seem to find anything about early termination of lease etc...

The business has a pretty good profile and has built a great reputation and clientelle, i am not too keen to just shut up shop, but we definately would not be able to maintain lease payments without operating.

We are two ways on what to do?

Sublease the building as a operating tattoo parlour?
Sell the business including the remaining term of the lease?
Approach the landlords to consider terminating the lease due to personal / hardship situation?
QUEENSLAND LOCATION

 

[Rob Legat - SBPL]

All of the above are options, it’s just a matter of talking to your landlord. Be aware that:

- any sublet or assignment will need to be agreed to by the landlord;
- they’re unlikely to want to allow you to just exit the lease, unless they’re feeling very sympathetic;
- you can be liable for any rent up until a new tenant is found/end of current term;
- any changeover process is not going to be quick. There are mandatory waiting periods under the Retail Shop Leases Act, and some complicated steps to go through. And that’s once you’ve found someone;
- if you do find someone to take over, they’ll need to prove their financial and business suitability to the landlord. This can be quite extensive for retail shops.

 

[Clancy]

Selling is probably the best option.
But If you managed to employ a tattooist to run the shop, then the landlord has no say in that. Even if the tattooist you hire, runs down the business, well, that may be ok so long as the business can last until the lease expired. And then there is always the chance they did a good job, and you can keep the business!!

 

[Clancy]

Even better idea.... in order to increase the chances of employing a good tattooist.... offer them they can take over the shop when the lease expired!