Retail leases: the landlord's reminder
Under a retail lease with an option to renew, the landlord must give the tenant written notice at least 3 months before the last date for exercising the option. The notice must state:
- the last date for exercising the option;
- the rent for the first 12 months of the renewed term;
- that the tenant may ask for an early market rent review;
- that the tenant has a cooling-off period; and
- any changes to the most recent disclosure statement, other than the rent.
If the landlord’s notice is late or incomplete
The tenant does not lose the option. The last date for exercising it becomes 3 months after the landlord gives a proper notice, and if necessary the lease continues on the same terms until then. The tenant may also choose to end the lease from the end of the term or later.
Early market rent review
The tenant may ask for an early market rent review, so the rent for the renewed term is known before the tenant is committed. The request must be made within 28 days after the landlord’s notice.
Cooling off
A tenant who exercises the option without asking for an early review may withdraw within 14 days. The lease is then extended by 14 days and is not renewed.
When the landlord can refuse
A retail landlord can refuse a validly exercised option only where the tenant has an unremedied default that the landlord has notified in writing, or has persistently defaulted and the landlord has notified those defaults. Keep the rent and outgoings up to date in the months before the deadline.
Retail leases with no option
Where a retail lease has no option, the landlord must tell the tenant between 6 and 12 months before the term ends whether it will offer a renewal. If the landlord does not, the lease continues until at least 6 months after the landlord gives that notice.
Disclosure on renewal
When an option is exercised, the landlord must give a renewal disclosure statement at least 21 days before the current term ends. See disclosure statements.
Offices, warehouses and factories
Under leases outside the Retail Leases Act 2003 (Vic), there is no statutory reminder. The deadline in the lease is usually strict, and a missed deadline can cost the tenant the option. Options often also carry conditions, such as no unremedied breach and notice in a particular form or to a particular address.
Protecting your option. Diarise the window as soon as the lease is signed. Exercise in writing, exactly as the lease requires, and keep proof of delivery. Check for any breach notices before you exercise.
How we help
- Confirming the exercise window and the conditions, and preparing the notice.
- Early market rent reviews, and negotiating the rent for the new term.
- For landlords: option reminder notices and renewal disclosure statements that comply with the Act.
- Disputes over whether an option was validly exercised or refused.
Law referred to
- Retail Leases Act 2003 (Vic) ss 26, 27, 28(1A) to (4), 28A, 28B and 64.
This page is general information about Victorian law as at October 2026. It is not legal advice about your lease.
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