Hi All,
I am just wondering, what is the out going on a commerical property owner will have? From Steve’s book, I know some of the expenses are paid by the tenant but what expense would that be .?? Basically, I am trying to find out what expense are the responsible of the owner of the commerical property and what is paid by the tenant?
J.
Depends entirely on the lease governing the relationship between Lessor and Lessee.
The best ones in terms of no outlay for the Lessor I’ve seen have the Lessee (tenant) paying the following – on top of the normal rent & applicable GST ;
Council rates
Water rates
Land Tax (usually limited to a single lot holding)
Comprehensive Insurance
All cleaning and maintenance of the prop.
Strata fees
Prop. Management fees
Renovations before expiry of lease (new carpets and paint, colours and level of tradesmanship to the Lessors satisfaction…you’ve just gotta love that expression !!)As I said, it depends totally on the exact wording of the Lease…but everything is negotiable.
This is where the power of CIP & IIP’s come in, trumping RIP’s hands down, as they are highly restricted by the RTA…OK ??
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Hi everyone
This is my first post – so hello!
With our commercial property, the tenant pays the following outgoings:
Council Rates
Water Rates
Body Corporate Fees
Insurance – Liability & fixures/fittings etc.as well as the rent each month. There’s not much more we pay that the tenants don’t cover (the only thing I can think of is the ASIC yearly fee which is not covered).
Its a good setup for us, and the tenant has a nice building to work from.
Of course, it all depends on the lease that is set up – we had our solicitor do it and it was very easy.
love and light
JanI see, I didn’t know that. That’s a lot better than a residential property.
Thank you everyone for your input.
J.
A tenant will very rarely be liable for the lessor’s management fee – why should they pay for your decision to have a property externally managed?
You will still be up for your building insurance & public liability (tenant pays plate glass and contents).
Tenant also is liable for consumption of water (not the sewer connection/standing charge), rates & taxes (above a base figure).
Alternatively you could get a gross lease where the rent is higher but is all inclusive of outgoings.
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