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Defining Unconscionable Conduct Protect Yourself Against Unreasonable Landlords
When it comes to doing business, the life mantra applies – do business with others as you would want to be done business with. Treating your customers, employees and tenants with respect is one of the most effective strategies to a successful enterprise and it makes sound business sense.
However, some commercial property owners are guilty of unconscionable conduct in their dealings with tenants, which has resulted in a crackdown by the Australian Competition and Consumer Commission (ACCC) in order to protect tenant rights and ensure businesses conduct their affairs in a fair and appropriate manner.
Take the recent case with ACCC v Dukemaster Pty Ltd [2009] FCA 682 (Dukemaster). The landlord was found guilty of unconscionable conduct and taking advantage of tenant ignorance, including:
-taking unfair advantage of the tenants limited English language skills to gain advantage;
-using unfair tactics, such as demanding immediate responses, which prevented the tenants from obtaining legal advice;
-sending unwarranted letters of demand, threatening eviction and refusing to negotiate on the terms of the lease;
-falsely representing that rent was reasonable and below market value, when the landlord did not believe this
Dukemaster was ordered to pay the tenants $275,000 to compensate for loss of business and damages.
What can tenants do to protect themselves?
Unconscionable conduct is not tolerated, but hopefully you wont have to go through a legal battle to demand respect and fair treatment. Tenants need to arm themselves with knowledge on how to protect themselves against unreasonable commercial real estate lease demands:
-Approach the landlord if you believe that a commercial property owner is being unreasonably harsh with lease terms, approach your landlord to negotiate. Many landlords will be quite reasonable in negotiations as theyll be keen to keep on a good tenant.
-Get an independent valuation if you believe that the rent is too high or unreasonable, request an independent valuation of the market. Sydney commercial property valuations are available from expert consultants to paint you an unbiased and fair picture of the commercial landscape.
-Seek legal advice if you have any doubts about your lease terms and contract, seek legal advice. Keep a thorough written record of all negotiations and agreements.
-Refer the matter to a Small Business Commissioner the state and federal government offers services and advice for small businesses that may need help. The Dukemaster case was referred to the ACCC by the Small Business Commissioner of Victoria while NSW tenants can find out more at smallbiz.nsw.gov.au.
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