I am looking into buying a commercial warehouse and renting it back to my company (at a tidy rate of course) and am asking a general question on your past experiences. To minimise the potential hassles of buying an ‘older’ warehouse, is it acceptable to include such things as repairs & maintenance as outgoings? Can I assume if the R&M is not specifically mentioned in the lease contract, they are not payable by the ‘tenant’?
The other potential problem I see is me as General Manager of the business drafting the lease to charge back the company a rent. In your opinion, is the transaction “at arms length” enough? I am not a Director of what would be the tenant (they are all based O/S), but I am the Public Officer.
What are your thoughts about getting into Commercial properties? Does it really matter what the physical property is as long as it pays its way?
Thanks guys.
I’m a little confused?
What you wan’t to do is buy a commercial property and lease it to your business?
Are you buying under company name that is different to the business you will be running in the property? If so then, its achievable.
repairs and manintenance are not assumed to be part of a commercial contract. Normally they are paid by the landlord. Tennant normally pays for fittings.
Sorry, I could’t have been of more help
Xenia
We buy properties in all conditions. Can offer Immediate Cash Settlements, No Real Estate Agents Required
[email protected]
phone 0412 437 582Xenia, thanks for the heads up.
Sorry I was not clear before.
Company A is looking at purchasing the property and have Company B as the tenant.
Company A is my own “personal services” company charging my time to Company B to act on their behalf – like consulting. Income splitting is a breeze with a great Accountant! (You must involve another Company C to do this though)
But it is this relationship that bothers me with a potential conflict of interest. I went back through the archives of Commercial posts and couldn’t find anything close enough.
I will get some legal advice and come back with their answer..
As long as you charge market rent, what you are proposing is very achievable.
You may have to prove to the AT0 that the rent is market rent. Simply get a few RE agents around an ask for their opinons of what the proeprty would rent for.
Hellman
we sold a commercial property last year to a person that did just that! so it is achievable!
We buy properties in all conditions. Can offer Immediate Cash Settlements, No Real Estate Agents Required
[email protected]
phone 0412 437 582
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