Hi to all and any feedback will be much appreciated, I understand how conditions and terms our negotiated in a commercial Lease but for items such as outgoings e.g. council rates, building insurance and etc it is common that the Lessee pays those and what period of time would you place a condition to repaint the surfaces of the property when a Lease ends: 2,3,5years?
Thanks.
Everything is negotiable – outgoings can be included in the lease (gross rent) or additional (net rent). As for repainting clause anything more than once every 5 years can be seen as onerous.
Hi Scott, also what happens when a Lease expires and the current tenant wants to renew with a new Lease, does any repairs damage that the tenant is responsible for flows over to the new Lease or does it need be be attended to first (made good) or its all renegotiated in the new Lease?
Generally, if the current tenant is taking a new lease of the premises then the make-good provisions are not enforced unless you require damage to be repaired (but you can request that this damage is repaired at any time during the lease). Unless the tenant is assigning the lease to another party, you would not enforce make good provisions until they vacate & the assignee would be responsible to make good, (make good generally refers to the removal of their fitout and patching/painting of any holes which remain).
Thanks Scott for your advice.
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