QLD Option to Extend Tenancy Agreement

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ConfusedQLD

Member
17 March 2018
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0
1
I have an REIQ commercial tenancy agreement and advised the landlord some 5 months prior to the initial term expiring that I would not be able to continue with the lease. Subsequently 6 days after the termination of the initial period the landlord advised by email that the "lease contract had expired and that he would send another by email to which I confirmed he could do so. As per the 'Option for Further Tenancy' (Clause 14) which I had not exercised I understood that I was now on a monthly tenancy (Clasue 2.2) and as I wanted to terminate the monthly tenancy provided a 'notice to terminate' 8 days after this email communication. I have now met with the landlord who is claiming a 3 month notice period or costs thereof. Where do I stand in this situation?
 

Rob Legat - SBPL

Lawyer
LawTap Verified
16 February 2017
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Gold Coast, Queensland
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It doesn't appear you're working off the current version of the REIQ Commercial Tenancy Agreement, but I don't think the outcome is any different. The below clause references are to the current version, so just check to make sure they haven't changed that part.

Unless you have a special condition to the lease which changes things Standard Condition 2.3 provides if you continue to occupy the premises with consent after the end of the term, it's on a monthly tenancy. You need to give one month's written notice "expiring on any day" to terminate. This means you give at least one month's notice, it doesn't have to be exactly one month.

This situation is different to the Property Law Act default position for continuing monthly tenancies. This does not apply under the Commercial Tenancy because of the above Standard Condition, unless there is a special condition in effect - I mention it for information and context.

Under the Act you need to give notice which equates to the balance of the current month you are in plus the next month (i.e. between 1 - 2 months). In practical terms under the Act: Say your monthly term started on the 15th of the month. If you decide to terminate on 22 March, 2018, you would give notice to terminate to have effect on 14 May, 2018. That is, the balance of the 15/3 to 14/4 period, plus the 15/4 to 14/5 period.

The reason I mention this is neither of the above means you need to give a three month notice period. Again, however (and this is important) - check you agreement's special conditions.
 

ConfusedQLD

Member
17 March 2018
2
0
1
It doesn't appear you're working off the current version of the REIQ Commercial Tenancy Agreement, but I don't think the outcome is any different. The below clause references are to the current version, so just check to make sure they haven't changed that part.

Unless you have a special condition to the lease which changes things Standard Condition 2.3 provides if you continue to occupy the premises with consent after the end of the term, it's on a monthly tenancy. You need to give one month's written notice "expiring on any day" to terminate. This means you give at least one month's notice, it doesn't have to be exactly one month.

This situation is different to the Property Law Act default position for continuing monthly tenancies. This does not apply under the Commercial Tenancy because of the above Standard Condition, unless there is a special condition in effect - I mention it for information and context.

Under the Act you need to give notice which equates to the balance of the current month you are in plus the next month (i.e. between 1 - 2 months). In practical terms under the Act: Say your monthly term started on the 15th of the month. If you decide to terminate on 22 March, 2018, you would give notice to terminate to have effect on 14 May, 2018. That is, the balance of the 15/3 to 14/4 period, plus the 15/4 to 14/5 period.

The reason I mention this is neither of the above means you need to give a three month notice period. Again, however (and this is important) - check you agreement's special conditions.

REPLY:
Thank you for your response. Further to this under the Commercial Tenancy Agreement it states deposit as opposed to bond; is this then treated the same in terms of it being held by the landlord until clearance is given for the property or can the deposit be used to cover a portion of the rent?
 

Rob Legat - SBPL

Lawyer
LawTap Verified
16 February 2017
2,452
511
2,894
Gold Coast, Queensland
lawtap.com
Deposit and bond equate to the same thing. In the Commercial Tenancy Agreement, the deposit must be applied to rent payable under the tenancy. You might find that you're just simply ahead in rental payments, rather than there being a 'refundable deposit'. In that case, it's already applied against the rent.