Hi all.
I am just about to put in contracts for 2 commercial properties both return 10% yeild..
1 of them is 3+3 lease option.
The other has been presented to me as a month by month lease for 12 months..Does anyone have any suggestions regarding adding clauses to lease and purchase documents to protect myself..??
The mnth by mnth was actually presented to me verbally as a guaranteed 1 year lease, but as I said has come back to me as a mnth by mnth.. I am changing that right away..
Are outgoings paid by the owner or the party leasing??
I believed that they were paid by the party leasing. If so should I add that to the contract of sale conditions or the lease agreement?
Should I receive any bond for the leased properties? If so, who looks after that? Should I get rent a month , 3mnths or a year in advance??
And what sort of out strategy should I have for the lease agreement?Hope someone can help a newbie comercial property investor..
Cheers
Calron the Alcamist
Turning things into gold is fun.
[email protected][
]Get copies of the leases and your questions
will be answered, even the month-to-month
tenants must have had a lease at some point.Generally with commercial the outgoings have
been paid by the tenants but that not a rule,
it depends on the lease.Victorian law recently changed so that you
can’t pass land tax bills on to retailers unless
they are a public company. Stupid meddling
government just forcing people to put the rents
up more to recoup their costs.Don’t sign anything until you have read the
lease agreements, otherwise how will you know
what you’re getting into.andy
calron
I found your question most interesting.ajwans
I found your answer very hepful.But I am wondering if anyone has more light to shed on this question as I too am concidering a commercial property.
Cheers
Leigh K[]Read, learn, grow but most of all do it.
]
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