Frequently Asked Questions
Frequently Asked Questions
Landlord:
How do I determine the rental value of my commercial property?
Rental value is influenced by location, property type, building condition, lease terms, market demand and comparable recent leasing transactions. A commercial leasing specialist can provide a detailed rental assessment based on current market conditions.
What outgoings can be recovered from a tenant?
Depending on the lease, landlords may recover costs such as council rates, water rates, owners corporation fees, land tax (where applicable), insurance and property maintenance expenses.
How long does it take to lease a commercial property?
The timeframe varies depending on the property type, location, rental expectations and market conditions. Well-positioned properties with realistic rental expectations generally lease faster.
What is a rent review?
A rent review is a mechanism within the lease that allows rent to be adjusted periodically. Reviews may be based on CPI, fixed percentage increases, market rent assessments or a combination of these methods.
Who is responsible for maintenance and repairs?
Responsibility is determined by the lease agreement. Generally, landlords are responsible for structural elements, while tenants are responsible for day-to-day maintenance and repairs relating to their occupation.
What happens if a tenant defaults on rent?
The process will depend on the lease terms and applicable legislation. Typically, landlords may issue default notices and work towards a resolution before pursuing further legal remedies.
Why should I engage a commercial property manager?
A professional property manager helps protect your investment by managing tenants, rent collection, maintenance, lease compliance and regular communication.
Tenant:
What costs do I need to budget for besides rent?
In addition to rent, tenants may be responsible for outgoings such as council rates, owners corporation fees, utilities, insurance and maintenance costs depending on the lease agreement.
What is a commercial lease?
A commercial lease is a legally binding agreement that outlines the terms and conditions under which a tenant occupies a commercial property.
What is a security deposit or bank guarantee?
Landlords often require security in the form of a cash bond or bank guarantee to protect against potential lease breaches or unpaid obligations.
Can I make changes to the premises?
Most landlords will allow fit-outs or alterations subject to written approval. Requirements vary depending on the property and lease terms.
What is a lease option?
An option gives the tenant the right to extend the lease for a further period under agreed conditions.
Who is responsible for repairs and maintenance?
Tenants are generally responsible for routine maintenance and keeping the premises in good condition during the lease term.
What happens at the end of the lease?
Tenants may have the option to renew, negotiate a new lease or vacate the property. The lease will outline any make-good obligations that may apply.
What is a make-good clause?
A make-good clause outlines the condition in which the premises must be returned to the landlord when the lease ends.
How can Reliance Commercial help me find the right property?
Our team can help identify suitable opportunities, negotiate lease terms, explain leasing costs and guide you through the entire leasing process.