https://www.sclqld.org.au/caselaw/QCAT/2015/340 Albion Comedy Club market rent. Action launched in District Court. Complexity: 8 / 10
Parties to Dispute:
Brisbane Comedy Pty Ltd t/as Albion Comedy Club & Restaurant v Malisano & Ors  QCAT 340 (RSL071-14) parties legally represented by established law firms.
Make submission to SRV; on failing to determine current market rent in accordance with the Act, assist Tenant and legal advisors to overturn determination.
Description of Dispute:
Original rent was $250,000. On exercising option proposed similar rent. Our preliminary advice was market rent was circa $100,000 gross. Difficulties in that lack of comparability between entertainment venues and or business models. Client subsequently believed our evaluation was too generous.
The first Determining Valuer “determined” current market rent at circa $150,000.
Tenant on legal advice vacated. He now leases his tables and chairs out for events. Has no responsibility for staff, running complex kitchens and having to seek (and pay for) comedians. He is making more money with far far less responsibility.
Inflated rents may significantly inflate the value of any property. Prior to acquiring an investment property, it is strongly suggested that one tests the veracity of the leases and the rent levels.