In brief

In 328 Hampshire Road Pty Ltd v Medical One Pty Ltd (Building and Property) [2021] VCAT 1117, another rental valuation was set aside for failing to provide detailed reasons in compliance with section 37 (6) of the Retail Leases Act 2003 (Vic).

What you need to know

If a valuer is conducting a rental valuation, the valuer is required to provide detailed reasons for the rent determined. If a valuer determines a rent should be an amount per square metre, the valuer will need to put in writing why the rate has been chosen. It is not enough to simply specify the rates for each comparable property, unless the valuer also specifies why the properties are relevant and why the rate and rent selected are appropriate.

Background

A valuer will need to:

  • Consider the evidence and state why the comparable properties are relevant;
  • Specify why a rate per square metre (as was in this case) has been chosen; and
  • If an average of various rates of comparable properties is chosen, state why this method has been selected.

No leaps to judgement can appear to occur. If the valuer selects a rate per square metre for example, the valuer will need to explain why the rate has been selected.

Conclusion

In conducting a rental valuation, a valuer must provide detailed reasons to comply with the Act.

Please see my last update with further guidance.

About the Author

Rohan Ingleton

Principal
A telecommunications and retail leasing expert, Rohan is a property specialist with an enviable reputation.

Latest Knowledge

Someone has posted a false review about my business – what can I do?

In today’s digital world, a single negative review can have serious implications on your business’s reputation and your bottom line. When that review is false or malicious, the consequences can be more damaging. So what are your legal options if...
12 May, 2025

Thinking of contesting a Will? Here’s what you need to know

Litigation can be a stressful experience, and this is especially true when it involves contesting a Will – an issue that often touches on personal family relationships. Understanding the process, the key legal issues and your rights are essential to...
6 May, 2025

Common pitfalls when selling your business

Selling a business requires careful consideration and planning. Often, if a business doesn’t perform as expected, the purchaser will look to the vendor to compensate them for the poor performance of the business.
29 April, 2025