Property Management

A lease sets out the obligations of each party, landlord and tenant. Whenever there is a query or dispute it is always the first document to refer to.

The disclosure statement is to be completed by the landlord under the Retail Leases Act 2003. This statement outlines aspects such as;

- The landlords details

- The tenants details

- Details of the premises

- The terms of the lease

- List of outgoings and their costs

- Rent payable

- List of other works relating to the property

- etc....

The Retail Leases Act was put into legislation in 2003 and was designed to enhance:

- The certainty and fairness of retail leasing arrangements between landlords and tenants.

- The mechanisms available to resolve disputes concerning leases of retail premises.

In the Act, retail premises means a premises, not including area intended for use as a residence, that under the terms of the lease relating to the premises are, or are to be used,  wholly or predominantly for:

- The sale or hire of goods by retail or the retail provision services.

Retail lease legislation applies to a retail premises lease used for the sale or hire of goods by retail or retail provision of services and where the occupancy cost is less than $1 million per year.

This is the number of years the tenant agrees to lease your property. It is the 'term certain' you are allowing the tenant to use the premises.

After the initial lease term most leases provide for the tenant to extend their lease by a pre-determined period.

Under the Building Regulations 2006, owners are required to provide a premises that complies with the Essential Safety Measures legislation. Premises are inspected to ensure it remains compliant.

Compliance requirements are both the responsibility of the tenant i.e: maintenance of clear walkways etc, and the owner i.e: regular checks.

The tenant is required to pay for the cost of these inspections in accordance with the lease obligations and amendments to the Retail Leases Act from October 2020.

Should the premises be found to be non-compliant then significant fines could be imposed upon either party responsible for not fulfilling its responsibilities. 

Most leases state the premises, upon lease termination, must be in the same condition as the lease commencement (excluding fair wear and tear). If we manage your property we ensure the tenant is aware of their obligations and inspect the premises to ensure the lease has been complied with.

Outgoings are expenses attributable to and necessary to maintain a property. Most commercial leases require the tenant to reimburse the outgoings. These are paid by the tenant, in accordance with the lease terms, in addition to the agreed rental.

Outgoings can consist of:

- Statutory charges such as council rates, water rates and drainage charges.

- Building operating costs.

- Insurance costs.

- Owners Corporation fees.

- Essential Safety Measures.

Yes, however they need to receive prior written landlord approval.

The tenant will need to request, in written form, the intended works they wish to carry out, licenses and insurances of trades they are using, time frames, costs etc...

An Owners Corporation manages the common property of the complex.

It carries out the wishes of the collective owners, collects Owners Corporation outgoings and ensures the rules are adhered to.

The Owners Corporation will collect charges for utilities, cleaning, insurance etc.. of the common areas and will charge a portion to each premises as defined by the deed of incorporation.

The Owners Corporation charges will in most cases be chargeable to the tenant as part of its lease obligations.

This is a cash amount which is paid by the tenant and held in an interest bearing account as required under the Retail Leases Act to secure against non-performance of the lease obligations by the tenant. This will usually be around three months' rent or more subject to the level of security provided.