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When does rent finish when commercial tenancy re-entered?

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  • When does rent finish when commercial tenancy re-entered?

    Hi All,

    We are PM's who have recently re-entered a commercial tenancy on behalf of a landlord client. The process went smoothly as re-entry was changing locks outside of business hours.

    Since then, the tenant has made little effort to get in a retrieve their belongings, or comply timeframes within any of the correspondence sent on to them, we have provided at least 6 different opportunities at times to suit the tenant for the tenant to access the premises to remove their items and they have arrived disorganized and taken barely anything away - its been a month already. Further to this we are aware that the Act requires the landlord to do everything they reasonably can to get the tenancy re-leased, and the landlord has a new tenant lined up, but until such a time as the tenancy is vacated we can't proceed with that.

    We have sought advice from the landlords solicitor who says we can't charge rent after the date of re-entry (not sure how much experience they have in this field). This seems counter-intuitive to the current situation and generally where we have re-entered in the past they have been complex franchise leases where the franchisee is re-entered, but the franchise holder can opt to continue paying rent until they find a new franchisee.. so not a good comparison (and it has been a number of years since we last needed to do this), so just looking for others thoughts on this.

    Questions are: At what point does the outgoing tenant stop paying rent? Is it on re-entry, or on the date that the property is vacated? How long is reasonable before the landlord sorts it out and adds the cost to the balance owed?

  • #2
    This sounds similar to buying a Mortgage Sale. Once we had possession of the property, we were not allowed to throw all their stuff on the street. But they wont know that. So through verbal communciation, rather than text or email. Say that they need to move all their stuff by Sunday 18/4 or the owners friends have said they are throwing everything in skips and having it taken to the tip. And the cost of this will be added to the rent. If you want to get legal, ask this guy, for a very cheap fee you will get a legal answer (mine is better)