Not renewing lease. How much notice to tenant?

Hi

I have a commercial property and the tenant’s lease is due to expire in 1 year.

Does anyone know what is the legal timeframe to notify them that I wont be renewing the lease in QLD?

Thanks
Salvatore

 

Courtesy would dictate between 1-3 months with 1 month minimum though they are required to pay up to the end date.

However, there are many buts. Does the lease contain at option? Has it been exercised?

Is it a retail lease? Other notification terms may apply.

How long is the lease?

 

Thanks for the reply. There is no option to renew and what happened was the tenant has been there for many many years but on a handshake agreement.

When I purchased the property the selling agent put one together but it is very loose and doesn’t have many specifics. At purchase I asked the question to the lawyer and was advised the lease doesn’t have to be renewed.

I was looking to see if there was a law. Morally I was thinking 4-6 months.

Cheers

 

@SalvatoreO - if you have a relationship with the tenant eg. if you're self-managing, then catch up with the tenant about 3 months out (if they're on the ball, they should raise the renewal between 9 & 6 months out from expiry (which would mirror an option). Let them know both formally (letter) and informally that the lease will not be renewed and there is no opportunity for holdover.

 

For commercial I would say 6 months. Finding and relocating can be a lot more difficult than residential. If you have the time available i would provide as much notice as possible.

 

I would also say 6 months, especially if its a business that needs a particular type of location/site. It takes a while to find/negotiate terms or a new commercial lease and also complete fitout etc.

I had a commercial tenant and the agreement specified 6 months notice.