Business owners please help! about shop Lease

[sitback]

Good morning!

My business premises lease has run out, the landlord just brought a new lease for me to sign. Currently I only pay monthly rent+GST, and the rent increases $50.00 every year. Never worry about council rate, water charge etc. Could anyone kindly translate the following clause in the lease?

"(c) To pay the Lessor upon demand from time to time such amount or amounts as are equal to one-third (1/3) of any increase or increases made during the said term or any extension or renewal thereof in local or municipal or other authority, rates, charges, assessments, impositions and outgoings and whether of an existing or novel nature and including water rates and as charged, levied or assessed against or payable by the Lessor in respect of the land and building of the Lessor of which the demised premises form part during the said term or any extension or renewal thereof over and above such rates. Charges and assessments, levied charged or assessed against or payable by the Lessor in respect of the whole of such land and building for the rates assessment period ended the Thirty day of June 2009."

thanks in advance.

 

[stephenb465]

I love the wording; I read it three times and still really don't understand what their conditions are. At first I thought you pay 1/3 of any services and then I just got lost.

I personally have leased out my business premise, got a 48 page lease document written up where the tenant pays for all out goings (Rates, water, strata, and management fees) the tenant even pays for the lease document.

Now I read through my the lease agreement and found it very straight forward,

maybe ask them to review the wording and put it into point form.

But anyway, sounds like you have a good deal going with the owner paying all outgoings, can I ask, how big is the Property, rent P/A

 

[sitback]

Thanks Stephen.

Currently I don't pay any outgoings, and I won't pay in the next term of lease, that's what I was told by the landlord. I presume all included in the rent.

the business premise is about 120m2.

 

[steveadl]

Sounds to me like the LL is leaving it up to his discretion whether or not he wants to "from time to time" forward on to you council rates, land tax etc to pay.

If this is the case and you don't like it, you can try and negotiate with him, but bare in mind you're coming from a weaker position if in fact your lease has already run out? The new lease should have been proposed and negotiated back and forth between yourself and the LL months ago, well before the current lease expired.

I don't think you're misreading it, so ring him for clarification and see what you can work out. I expect this to happen to me at the end of my current lease - last time was just an option extension so no re-writing and does not include outgoings. I'm aware at any new lease negotiations he can lump me with the lot if he's in the mood, there's not much I can do about it, and to be honest I'm surprised he didn't do it last time round.

PS What he told you doesn't mean much unless it was in writing. I tried to strike out a term in my last lease that allowed him to move a competing business in next to mine. He assured me that he would never do that, but insisted on keeping the clause in there anyway. So far so good.

 

[Ausprop]

seems like you have been on a good wicket not having to pay the council rates and outgoings - unless of course it was just 'built in' to the rent

 

[boods99]

It looks to me that your rental payments are inclusive of all rates and taxes, and the landlord will require you to pay 1/3 (Im assuming your tenancy is 1/3 of the building for approtionment purposes) of any increase in statutory outgoings, without having to alter the rental amount per year.
Boods

 

[Dazz]

The Landlord increases the rent by 41c psmpa (per square metre per annum). Are you serious ??

If I was you, I'd forget the wording in the clause and immediately sign up the joint for 100 years, with an option to extend for a further 100 years.

It sounds very much like to me, that your entire rent bill per year to operate your business out of, would buy about 3 hours of solicitor's time to fully explain to you what you are reading.

Do you do a good deal by any chance, on snaggers or a good lamb chop ??