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Issues with commercial property

Discussion in 'Commercial Property' started by Faust, 23rd Jun, 2015.

  1. Faust

    Faust New Member

    Joined:
    22nd Jun, 2015
    Posts:
    3
    Location:
    St Marys
    This is a long drawn out battle Ive been having with the real estate and I'll try and summarise it as best I can . Im a small mechanical repair shop in western Sydney .

    About 6 years ago I took a 3+2 year lease on a property . Prior to the agreement I noticed there was wiring that was hanging from the ceilings inside the warehouse and also there was only 4 gas operated lights for the main area . There was a lot of broken downlights and powerpoints . I was assured that these would be repaired . After moving in the premises was flooded , this became a constant issue . I was told that the drains were blocked and needed clearing . Eventually after flooding happened nearly a dozen times they told me there is a problem with the piping and the owner refused to fix it . It would require the old pipes to be removed and replaced with new ones , this was caused by the tree roots . To this day this still hasn't been fixed . The real estate agent changed and I was given the same story as before that the drains are blocked . I also still have leaks from the roof , one leak was directly leaking onto a power point which took nearly 2 years to get them to fix it . The other leaks are minor but there has been no attempt to fix them .
    After moving in the wiring in the building became an issue . Some of the power points didn't work , others when used blew fuses . During some storms the power would go out , often damaging the security system . They sent out 3 different electricians to quote the needed repairs but nothing was actually repaired .
    After about 2 1/2 years I asked to break the contract and leave . My lawyer sent a letter but it was rejected . From this point on they started complaining about the amount of vehicles in the car park . Yes I will admit I am always busy and have a lot of cars , but don't all workshops (I forgot to mention about a year ago another workshop opened up in the same unit complex and he has cars out the front as well !) . I received a letter of termination of contract while the contract was still valid . Nothing eventuated with this .
    So the big ending came just after Easter when I was locked out . No reason , apart from me being too busy and having too many cars there . I had to get my lawyer to allow me to enter the premises so I could get personal belongings . Its now been 2 1/2 months and Ive only had 2 weeks access to remove goods . In the meantime Ive had a car stolen , another damaged , the place was flooded while I didn't have access (my security was completely disabled about 2 weeks prior after flooding and an electrical storm ) . Insurance wont cover any of the flood damages because its so constant and they told me that its up to the real estate insurance to cover the damages . So to gain access Ive tried the tenancy tribunal and small business mediator and the owner has not co-operated . Is court my only option to gain access ? What rights do I actually have here as Ive had customers cars inside , some have decided to go to fair trading . Ive returned some at a loss and I have barely worked in this time , yet they are still demanding rent from me . My lawyer hasn't really been helpful either . Any help would be appreciated !
     
  2. KDP

    KDP Well-Known Member

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    22nd Jun, 2015
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    Location:
    Singapore
    What does your lease say?
     
  3. Faust

    Faust New Member

    Joined:
    22nd Jun, 2015
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    Location:
    St Marys
    The lease has expired though ?
     
  4. Pistonbroke

    Pistonbroke Well-Known Member

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    18th Jun, 2015
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    Location:
    Guangzhou
    The lease still gives you certain rights. Refer to the termination clauses and holding over provisions.

    Your solicitor sounds inexperienced in this field.

    On what grounds was the lease terminated? Breach?
     
  5. KDP

    KDP Well-Known Member

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    22nd Jun, 2015
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    Location:
    Singapore
    The lease should deal with whether they are justified in locking you out (ie. were you in default and what the termination procedures are) and your rights to access the property.

    I would check with your lawyer as to what you options are, if they're not helpful perhaps go to another lawyer.
     
  6. Jamie.CommercialPM

    Jamie.CommercialPM Member

    Joined:
    23rd Jun, 2015
    Posts:
    5
    Location:
    North Perth
    You took out a 5 year term, unless you have extended the lease has expired. You can provide notice in accordance with your lease. Most leases are 1 months notice.

    Find a Commercial Property Lawyer they will be able to assist.

    We generally allow access to the premises for the tenants to remove their equipment, whilst in a normal lockout the Lessee is responsible for losses to the Owner it is in the Owners best interest to re-lease the property so the quicker the property is cleared out the quicker the cleaning can be done and the property leased.
     
  7. Faust

    Faust New Member

    Joined:
    22nd Jun, 2015
    Posts:
    3
    Location:
    St Marys
    I understand that there would terms under the contract , but since the lease has expired so would the contract ? Even if they did break the contract how will that help my situation now ?
    My problem is 1 month was never going to be enough notice to move . Its now coming close to 3 months since Ive been locked out and Ive only been allowed access for 2 weeks . They are telling me I legally have to pay rent and also have threatened to sell goods inside the unit . They have refused all types of mediation / tribunals . Im just at a loss as to what to do . Do I call the police and say they wont return my goods and call it theft ? Do I claim the loss of all goods under insurance ? Do I stop paying rent ?
     
  8. S.T

    S.T Well-Known Member

    Joined:
    18th Jun, 2015
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    428
    Location:
    I'm not selling anything
    As per all the advice

    1) Read your lease
    2) Contact a commercial property lawyer and discuss the case with them.

    I've been involved with a lock out from a landlord perspective once before (retail) it's not a fun situation, so make sure you get the correct advice.
     
  9. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
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    Posts:
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    Location:
    Sydney or NSW or Australia
    • You were sent a notice to vacate, when did they enforce it? You were on monthly hold over - ie one month notice to vacate, it cuts both ways.
    • You have been given ample opportunity to remove your equipment/your client's cars.
    • Yes, the lease has expired & been terminated, you should have cleared out your stuff by the expiry of the notice period.
    • The lessor has let you back into the premises to clear out your stuff - do it, don't faff around - 2 weeks is ample time.
    • Yes you are liable to pay rent until all your stuff is gone.
    • No you cannot trade from the premises.