A retail landlord has been ordered to repay a Mandurah pharmacy more than $42,000 after the State Administrative Tribunal found it was unlawfully charging management fees for four years.
The trustees of the pharmacy - which now trades as Priceline Pharmacy, but has previously traded as Friendlies Chemist - claimed their landlord, Kimbriki Nominees Pty Ltd, charged them management fees and failed to review their rent every two years, as required by the lease agreement.
![The pharmacy is part of a cluster of shops near Mandurah foreshore.](http://web.archive.org./web/20170705044011im_/https://www.fairfaxstatic.com.au/content/dam/images/1/m/p/7/n/r/image.related.articleLeadwide.620x349.gx3kja.png/1499060059088.jpg)
The incorrect fees were paid between April 2011 and April 2015 and the rental price set during the mining boom.
Trustees Walter Phillipe and Alan Hipper took the excessive charges to the State Administrative Tribunal, questioning the landlord's processes, with Judge Tim Sharp ruling in their favour on Friday.
An order was made for the management fees to be reimbursed within seven days, however, despite Judge Sharp agreeing the rent should have been reviewed in 2011, 2013 and 2015, the tribunal did not have the jurisdiction to enforce any orders in relation to the matter.
The phamarcy's trustees were seeking damages be paid equal to the difference in rent from what they were paying, to what they should have been paying, if the reviews had occurred.
The landlord had previously conceded, under the Commercial Tenancy Agreements Act, it was obliged to repay the tenant $42,248.74 for management fees it received.
In the wake of the ruling, Peel Chamber of Commerce and Industry Inc manager Andrew McKerrell urged any small business owners entering into a contractual arrangements with a landlord the seek professional advice.
"It would appear that some businesses struggle to fully comprehend regulations and legislation in relation to contractual obligations," he said.
"There is a Landlord's Advisory Service and a tenancy advisor service in WA, and REIWA has a comprehensive range of support services – the Peel Chamber would strongly recommend anyone entering into any contractual arrangements seeks professional advice.
"The best thing tenants can do if they are wary of their contractual obligations is search for clarity and confirmation through the Department of Commerce Consumer Protection website."
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