Are there any specific regulations and/or laws which apply to leases of particular categories of real estate, such as residential, industrial, offices, retail or hotels and what is their impact?
Leases of residential property are regulated by the Residential Lease.
Industrial property and offices are normally governed by the general guidelines in the Obligations Act and the Leasing and Sale of Business Premises Act.
Retail leases may allow for turnover rents, where all or part of the rent is determined by the store's profits. They may also include provisions allowing the landlord to maintain a suitable mix of retail tenants.
In addition, retail tenants may be subject to obligations that exist for the benefit of the shopping centre as a whole; for example, an obligation to keep open and trade during specified hours and to contribute towards the marketing of the centre. Although the landlord will maintain the structure and exterior of the premises, a retail tenant may be given the right to maintain its own shop front in its usual trading style.
Hotel leases are similar to office leases, except where the hotel is located in a shopping complex, in which case the lease will have more of the characteristics of a retail lease. Hotel leases often contain detailed provisions relating to the management of the property or, alternatively, the management arrangements may be set out in a separate document providing for a dedicated hotel management company.
