Property left by old commercial tenant?

Hi,

Before I lawyer up and get totally ripped off, what legally should I do with the ex tenant's personal items:-

Situation - he broke off a lease contract worth another 3 months and has about 3 months bond left:

Items which he has not removed:

1. A fancy roller door gate at the back of the property that he installed himself to help run his business.

2. 2 x glass entrance doors.

3. Furniture left over - tables, chairs and 2 x sofas. They look about $2K max on market.

For what it's worth I can't say 100% whether it's his or whether it's someone else's stuff he has in there or even if it is rented, so legally I'm attempting to protect myself from him X months down the track and attempting to claim compensation for items which I had removed/disposed of?

What steps should I take before I remove items?

Thanks.

Regards,
 
You need to refer back to your commercial lease.

There should be a section re non performance and also restoration of premises.

The likelyhood is that all goods left are yours as he owes you rent and you need to fix the place up.

You would be wise to communicate this to the ex tenant in the form of a statement where the monies were applied.

Cheers
 
Check your lease regarding termination. Service the breach notice to terminate.

Is the bond cash or a bg?

Depending upon state legislation if any eg. retail lease you may have specific requirements prior to lockout.
 
According to the lease which is a very generic retail lease it states to the following effect:

5.1 When the term ends, the tenant must-

5.1.2 Remove the tenant's installations and other tenant's property from the premises and make good any damage caused in installing and removing them,

If the tenant leaves any tenant's installations or other tenant's property on the premises after the end of the lease, unless the landlord and tenant agree otherwise -

5.1.3. in relation to items to which part IVA of the landlord and tenant act 1958 apply, the landlord will have the rights and powers conferred by part iva and

5.1.4 in relation to all other items of tenant's installation and tenant's property they will be considered abandoned and will become the property of the landlord, but the landlord may remove any of the tenant's installations or other property and recover the costs of removal and making good as a liquidated debt payable on demand.

He has handed back the keys as mentioned but what I am really concerned about is if he really has properly terminated his lease is what would trigger the above to be effectively abandonment.

Spoke to a lawyer, reckons it is about 5 hours work for $1.8K....bit rich or fair price? He would review lease, see if any clauses which could trigger him suing in future, write letters and also include reservations I may sue for lost income and also get him to sign anything which would effectively conclude our contract.

Bond is in cash.
 
The $1.8k seems in the right ballpark. Personally I'd see spending that on a lawyer as insurance in case something comes back down the track.
 
Handing back the keys is a good sign that he has rescinded the lease.

If it is a NSW retail lease, why are you holding a cash bond? This is contrary to the RTA1994 - bond to be lodged with Retail Tenancies Board.

You will need to follow up issuing notice of termination based on breach (non-trading).
 
Formally write to the tenant (and any guarantors listed) to all addresses that you have advising them that:

- on this date XX that they have formally rescinded the lease through the removal of their items and return of keys

- detail any outstanding monies that need to be paid within 7 days

- detail any items to be rectified under the terms of the lease and works to be completed 7 days at an agreed nominated time and date or the costs will be deducted from the bond

- detail lessee items left behind and if not collected within 7 days at an agreed nominated time and date that they will be disposed of

Ensure that the letters are issued by registered post that requires a signatory.
 
Formally write to the tenant (and any guarantors listed) to all addresses that you have advising them that:

- on this date XX that they have formally rescinded the lease through the removal of their items and return of keys

- detail any outstanding monies that need to be paid within 7 days

- detail any items to be rectified under the terms of the lease and works to be completed 7 days at an agreed nominated time and date or the costs will be deducted from the bond

- detail lessee items left behind and if not collected within 7 days at an agreed nominated time and date that they will be disposed of

Ensure that the letters are issued by registered post that requires a signatory.

Thanks!

How does one go about this -

He has actually sold his house as I am aware of and pour all funds into children's trust accounts....basically he is worth $0 (surprise surprise)- only things I can get is his bond.

I think he now has no permanent address and is b&mming at his mate's place...so a bit of an issue with the registered post.

Thirdly, how did you get the 7 Days time limit for repossession of goods? Where is this in the legislation?

Thanks.

Regards,
 
You need to show that you have made all attempts to contact the tenant. So that means correspondence to all addresses that you are aware, any legal or financial representatives that he used etc.

If they come back not at this address, then just keep them as a record.

Unless detailed otherwise in the lease, seven days is sufficient for the tenant to recover his chattels.

Essentially all you are doing is documenting that he has terminated the agreement by leaving and is not making a claim on what remains as you have given him an opportunity to make a claim.

Just remember that you will need to arrange for his name to be removed from the title if the lease was registered.
 
Suggest lots of definitive photos and a thoroughly detailed outbound condition report and cc the lot to the ex-tenant's reps giving them a deadline to take action to avoid disposal then dispose as you see fit. Can't be more reasonable than that.
good luck
Cheers
crest133
 
He has actually sold his house as I am aware of and pour all funds into children's trust accounts....basically he is worth $0 (surprise surprise)- only things I can get is his bond.

Don't assume this. If he owes you money you - more than $10k - could bankrupt him and claw back gifts made in the last 5 years.
 
You need to show that you have made all attempts to contact the tenant. So that means correspondence to all addresses that you are aware, any legal or financial representatives that he used etc.

If they come back not at this address, then just keep them as a record.

Unless detailed otherwise in the lease, seven days is sufficient for the tenant to recover his chattels.

Essentially all you are doing is documenting that he has terminated the agreement by leaving and is not making a claim on what remains as you have given him an opportunity to make a claim.

Just remember that you will need to arrange for his name to be removed from the title if the lease was registered.


as above. u need to show genuine and sufficient attempts for the lessee to recover his items. as a seperate matter from the debt owed via registered post/express (not regular) and to all serviced/known addresses until it is 'deemed' abandoned
 
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