‘I am the owner of a commercial property’ (Lessor)
When should I send a rent review reminder?
Most good leases provide for a procedure to be followed when the rent is reviewed. Where the rental on a lease is subject to GST, our lease provides for the Lessee (the tenant) to pay you that GST when you issue them with a Tax Invoice. It is usually acceptable to issue one Tax Invoice for the entire year and ask that the Lessee pay one twelfth of the tax invoice (which includes the GST) monthly. We recommend that the annual Tax Invoice be provided to the Lessee at least a month before the new monthly rent reviewed rental is payable. If the rent is not subject to GST we suggest that an invoice for the new monthly rent be issued at least one month prior to the commencement of the new year.
How do I know what the CPI increase is?
Click here for the current CPI increases.
The rent is due for review, how do I calculate it?
Your lease will stipulate how the rent is to be reviewed. Typically it will be either a fixed percentage or in accordance with CPI.
I want to develop the premises, but I have a tenant in there
Where a property is leased to more than one Lessee (Tenant) it is usual that the Leases will finish at different times. It may be difficult if not impossible to redevelop a property, unless the Lease takes this into account, without protracted and costly arrangements having to be made with some or all of the Lessees. Our leases provide for the Lessor (the owner of the land) to redevelop the property during the term of the lease.
I want to move into the premises, but I have a tenant in there
It is important that when a lease is prepared that it takes into account what you want to do with the premises in the future. You can only take possession of the premises at the end of the term of the lease or at any other time that the Lease permits.
The Lessee wants the Air Conditioner serviced; who should pay?
Your lease should determine who is responsible for the maintenance of air conditioners and other equipment on the premises. Adcocks will be able to help you to understand your lease and assess who is responsible for repairs and servicing.
At Adcocks we write into our lease that servicing is to be done by the Lessee twice yearly and that proof of the same be provided to the Lessor.
What do I do if my tenant is late in paying their rent?
If you have a property manager, they will attend to this. If you do not, your lease will determine the course of action to be taken to recover the money. Many people have leases prepared but have trouble understanding them and their rights under the lease.
Our Lease has been written in a manner that makes them easy to understand to both the Lessor and Lessee. Adcocks will help you understand your lease and provide assistance in preparing letters and notices for unpaid money.
What is a Disclosure Statement and why do I need one?
A Disclosure Statement under the Retail and Commercial Leases Act is required to be issued with all leases. The Statement includes such information as the permitted uses of the shop, the lettable area, access arrangements, the basis of the rent and a range of other items.
//Adcocks includes a Disclosure Statement (if required) as part of their Lease.
Why do I need a Commercial Lease?
A Lease provides you with a legally enforceable contract for the occupation of the property and sets out the rights and obligations of all parties to the lease including rent and outgoings for a fixed period. The Lease provides you with a secure income and “Security of Tenure” for the Lessee. If you don’t have a written lease you may find the tenant has no obligation to contribute towards insurance or do anything to the premises leaving you out of pocket and you may find yourself with a steep clean up bill before you are able to re-let.
//Adcocks have a great deal of experience in commercial leasing.