One crucial step for tenants to prevent disputes before installing equipment in the shop!

The Federal and State governments have recently introduced various benefits, such as subsidies and tax deductions, to promote the adoption of renewable energy solutions. Two notable programs in this regard are the Solar Program for Business and the Small Business Energy Incentive Program.

However, it is crucial to avoid potential lease breaches when applying for these incentives to prevent costly legal fees and complications.

What are the risks involved?

When installing new equipment, business tenants must consider their lease agreements and adhere to the rules regarding property modifications. Tenants often need to seek permission from the landlord before making any installations. Failure to obtain approval or neglect to clarify responsibilities regarding the equipment can result in legal disputes. The specific regulations depend on the type of changes required, the type of rental property, and the duration of the lease.

How can you avoid expensive disputes?

To protect a business and mitigate potential risks, tenants should obtain the landlord’s approval for equipment installations and clearly define the responsibilities of both parties regarding the equipment.

Whether you are a tenant or a landlord, a lawyer can play a crucial role in helping you avoid future disputes. A lawyer can assist in the following ways:

  1. Documenting the agreement between the landlord and the tenant, including repair and maintenance arrangements, location specifications, and payment details for upfront installation costs.
  2. Negotiating lease amendments regarding installation, repair and maintenance costs and equipment ownership at the end of the lease term to prevent future disputes.
  3. Providing advice on rights and responsibilities.

As a business owner, it is essential to prioritise compliance with lease agreements to avoid costly disputes. If you have any concerns or questions regarding commercial tenancy issues, please contact us immediately. Our commercial lease lawyers will ensure that your interests are protected.

Source: https://www.consumer.vic.gov.au/housing/renting/repairs-alterations-safety-and-pets/renters-making-changes-to-the-property

*Disclaimer: The above content aims to provide general legal knowledge and should not be considered specific advice for your individual situation. The law is complex, and we strongly recommend seeking professional legal advice. Canaan Lawyers is not responsible for any loss or damage incurred by anyone as a result of the information included or omitted in the above content.