Car park lease

Whilst its not a big numbers deal I need a few ideas

Had this particular space for 10 years lease is up on the 9th December 2009.
Tenant has options which they have decided not to take up.

They have offered through their lawyer a new lease 5 years with 3x5 year options. With the rent reduced.

08/09 year was around $4800. The new lease brings this back to $3060 + 2% increase every year and market at the further periods.

The tenants lawyer will prepare the documents for a sum of $638
I would imagine there are about 400 owners who have been contacted with this letter they're not making bad money for a generic lease document.

I feel like I have been push around a bit. I think the owners should have a co op and band together but im not sure how this is formed when you don't know them?? Do I just take back the space and rent it out as I see fit?
We dont owe any money on it. We dont live in Melbourne (where it is) so I dont personally need it.
 
This is wrong on about 35 different levels....

Tenant has options which they have decided not to take up.

No worries - sounds like they don't want it.


They have offered through their lawyer a new lease 5 years with 3x5 year options. With the rent reduced.

hmmmm.....sounds like they do want it.....with a slight twist.

Sounds like a bargain - you get 5 years tenure, they get 20 years control with a massive reduction in rent. One side of the contract is getting screwed here.....can you guess which one ??


08/09 year was around $4800. The new lease brings this back to $3060 + 2% increase every year and market at the further periods.

Sounds fantastic......with that level 2% of escalation rate they are offering, in only 23 years time the rent will be back to what it was last year....:p

Who knows, seeing as though this effective market review (as all new Lease negotiations are) has just lopped 37% off your rent.....you only need two more of those before you'll be paying them to use your carpark !!!



My only real suggestion would be to ;

1. Ask them if they want the spot or not ?? If so, the rent is $ 5,500 p.a. with 4% p.a. increases. If not, bugger off and I'll lease it out to someone else.


The tenants lawyer will prepare the documents......

OK, I've heard enough.
 
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Yes, you there up the back Mr Williams, what do you have to say for yourself ??

Stand up boy when you are addressing the class and speak up with a nice loud voice.

Poor Mary down the front here can't hear a word you're saying.....and for the last time pull your sox up and tuck that shirt in properly or so help me you'll be marched straight up to see Mr Sim.
 
my god - i read that and started to get confused about who was the tenant and who owned the property for a second there....

Ditto

It sounds like you're getting pushed around there Maloo!

If I were you I'd tell the tenant to forget about it and that you're going to find a new tenant. Then you'll really see whether they need the space or not.
 
Get rid of them Maloo :eek: It's bad enough that they got some lawyers to draw up those crazy terms, but they also wanted to charge you $638!!!

"Do I just take back the space and rent it out as I see fit?"

Yes!!! It always was yours for the last 10 years.

$5,500 p.a. sounds like a good increase. If they don't like it, give them notice.
Let us know if there are any more ridiculous letters from lawyers or demands/requests.
 
from my dangerously basic understanding, if they haven't exercised their option they have to vacate before the end of the existing lease....no?

or re-sign a new lease with your new tenancy terms attatced...?
 
Vacate day is 9 December.

The answer I was sort of looking for was how to form an owner co op and then maybe neogotiate the lease as one which would most likey put me and other owners in a better position. I would imagine they need a certain number of spaces available to meet their obligations for their 180 serviced apartments and 3 levels of retail........the numbers needed I don't know but I would suggest they dont want everyone taking back the space.

If I was to lease on a month to month privately it would fetch maybe $250 a monthwith their lease the figure is $255 and I don't have to find people to lease it to.

As for who is do driving well thats not hard to see I knew before I posted but when you consider the above they have me sort of where they want me. The $638 jacks me off enough not to renew and leave the space empty but thats not real good as this little earner pays my motorcycle fuel and tyres.
 
Vacate day is 9 December.
If I was to lease on a month to month privately it would fetch maybe $250 a monthwith their lease the figure is $255 and I don't have to find people to lease it to.

The $638 jacks me off enough not to renew and leave the space empty but thats not real good as this little earner pays my motorcycle fuel and tyres.

You've kind of justified their rent position - are you sure that $250 a month is the market rate? If its true, i'm not surprised they haven't exercised their option. You also said you don't live in the area anymore so leasing to this corporate will save you management headaches - short term leasing to individuals will mean void periods and unreliable rent payment. You may need a managing agent if you aren't in the area.

Other terms quoted are very tenant friendly - i'd counter at $300 per month (if market rate established), 3 year term, 4% fixed increases, no options. Shorter term will allow earlier renegotiation to market if it bounces back.

Don't use their solicitor's template document - it will be very tenant friendly. I'd add to the terms that they are to meet your reasonable legal costs capped at say $500 and get a solicitor to draft and act for you.

As for the landlord co-op - you stated there are 400 space owners so good luck with that! The market rate is the market rate - keep the term short with no options to avoid being screwed in the future.
 
Just looking through what their mouth piece has offered in the document it states........ In accordance with section 51 of the RL act the landlord cannot claim lease and disclosure docs from the tenant.

So I figure the carspace is classed as retail.

As for the market rate I just had a peek on findacarspaceorsomethinglikeit.com and seen what others were asking.

Should I just email the solly and give him my new offer. I like your idea of not tying it up to long Pom.
 
Just looking through what their mouth piece has offered in the document it states........ In accordance with section 51 of the RL act the landlord cannot claim lease and disclosure docs from the tenant.

So I figure the carspace is classed as retail.

As for the market rate I just had a peek on findacarspaceorsomethinglikeit.com and seen what others were asking.

Should I just email the solly and give him my new offer. I like your idea of not tying it up to long Pom.

Do research first - make sure you know what car spaces are going for in the immediate area and wider area if you can - call a few agents who might give you a couple of minutes of free advice on values.

Ultimately though - yeah e-mail through your revised offer with a sunset date (to be accepted by date or offer no longer valid) and see what happens.

Still wouldn't touch their document - use a landlord friendly template from a solicitor acting for you.

Incidentally, if they are classing it as Retail Act, I thought tenants paid landlord's renewal legal costs under the legislation? Get legal advice.
 
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