We are currently in the process of purchasing our first CIP and have a couple of queries that we would like your opinions on. Have had a look through a lot of old posts and haven't found anything similar.
We will also be discussing each of them with a Commercial Property Lawyer.
1) The tenants are currently paying less than what the lease agreement states - this has verbally been agreed between the current landlord and the tenant. What are the consequences of this on the lease agreement - are they in default or would the lease agreement not be applicable now?
2) The lease finishes in 1 year at which point there is a 5 year option - if the tenant wishes to take up the option they must do so between 6 and 3 months before the end of the current lease. There is a market review of the lease at this time as well. We would be happy for the tenant to not take up this 5 year option, do we need to advise them of the timeframe in which they need to renew or can we just sit back and hope they either want to move out and not renew or miss the timeframe in which they are meant to renew?
We have a copy of the lease agreement and it looks pretty standard for WA.
Any feedback would be appreciated.
We will also be discussing each of them with a Commercial Property Lawyer.
1) The tenants are currently paying less than what the lease agreement states - this has verbally been agreed between the current landlord and the tenant. What are the consequences of this on the lease agreement - are they in default or would the lease agreement not be applicable now?
2) The lease finishes in 1 year at which point there is a 5 year option - if the tenant wishes to take up the option they must do so between 6 and 3 months before the end of the current lease. There is a market review of the lease at this time as well. We would be happy for the tenant to not take up this 5 year option, do we need to advise them of the timeframe in which they need to renew or can we just sit back and hope they either want to move out and not renew or miss the timeframe in which they are meant to renew?
We have a copy of the lease agreement and it looks pretty standard for WA.
Any feedback would be appreciated.