What Your Landlord Can and Cannot Do in Queensland

Entering into a tenancy agreement for commercial premises in Queensland? It’s important to understand your commercial tenants’ rights.

Generally speaking, a Queensland commercial landlord can enforce the lease, collect agreed rent and take action when a tenant breaches their obligations. They cannot ignore the lease, bypass the Property Law Act 2023 or contract out of protections under the Retail Shop Leases Act 1994.

However, your exact commercial tenant rights in Queensland also depend on your lease and whether it is retail or non-retail.

Key takeaways

• A landlord can only increase rent using the method and timing allowed by the lease and applicable law.
• Retail tenants have additional disclosure, rent review and outgoings protections.
• A landlord must not unreasonably withhold consent to an assignment or other listed actions.
• Most breaches require a valid Form 7 notice and allow the tenant reasonable time to remedy the issue.
• QSBC mediation is available for eligible disputes, but QCAT generally only hears retail tenancy matters.
• Your best move as a commercial tenant is to connect with a commercial leasing lawyer who will ensure your interests are protected.

What can a Queensland commercial landlord do?

Your landlord can require you to meet the obligations accepted when signing the lease. Depending on the document, this may include paying rent and outgoings, maintaining parts of the premises, complying with the permitted use and completing make-good work at the end of the term.

A landlord may review the rent, when the lease allows it. For example, the increase might be based on a fixed percentage, the Consumer Price Index or a market review. What the landlord cannot do is invent a new calculation or apply a review that conflicts with the lease or retail leasing law. The Queensland Small Business Commissioner provides further guidance on annual rent increases and market reviews.

If the terms of the lease are breached (providing they were fair and legal to begin with), the landlord may issue a formal notice, seek compensation and pursue termination or re-entry through the lawful process.

Requirements under Queensland leasing law

For a retail shop lease, the landlord must generally provide a draft lease and disclosure statement at least seven days before the tenant enters the lease, unless a valid waiver process applies. The landlord must also follow statutory rules covering rent reviews, outgoings and other retail lease matters.

Across commercial leases, section 142 of the Property Law Act 2023 says a landlord must not unreasonably withhold consent when the lease requires approval for actions including:

• Assigning or subleasing the lease
• Changing the permitted use
• Sharing possession or carrying out alterations

The landlord can request information required by the lease and consider legitimate concerns, but refusal should be based on reasonable grounds rather than used simply to prevent a tenant from moving, selling the business or adapting the premises.

Landlords and tenants must also act in good faith by dealing honestly, reasonably and with fair consideration during negotiations and disputes.

If you are unsure which framework applies to your premises, read The Difference Between a Commercial and a Retail Lease.

What is a commercial landlord not allowed to do?

A landlord cannot disregard legislation when creating the lease. Under the Retail Shop Leases Act 1994, a term attempting to exclude the conditions of the Act is void, and the Act prevails over an inconsistent lease clause.

A landlord also cannot usually terminate the lease or lock a tenant out immediately after an alleged breach. Section 153 of the Property Law Act generally requires an approved Form 7 notice describing the breach, what must be done to fix it, any compensation claimed and a reasonable period for remedy.

With this being said, exceptions can apply, including where the landlord reasonably believes the premises have been abandoned. Different rules can also apply to periodic tenancies and tenancies at will. Tenants should seek urgent advice rather than assuming every lockout or termination is automatically valid or invalid.

What can you do if you believe your lease is incorrect or unfair?

As a commercial tenant, check your lease carefully before you sign and keep every notice, email, invoice and photograph connected to the issue. Respond to messages in writing and avoid withholding rent without legal advice, as this may create a separate breach.

The Queensland Small Business Commissioner (QSBC) can provide dispute assistance and mediation for eligible retail and commercial leasing disputes. Retail tenancy disputes generally proceed through QSBC mediation before an eligible unresolved matter is referred to the Queensland Civil and Administrative Tribunal (QCAT).

For an ordinary commercial lease dispute, both parties must agree to QSBC mediation, and QCAT does not generally have jurisdiction. Court action may be required if no agreement is reached.

It’s also important to have the support of an experienced commercial lease lawyer. This specialist can ensure the lease protects your best interest to begin with. Asking them to check the terms before you sign can prevent a great deal of stress down the track.