I've googled and haven't found much info so hoping SS forumers can assist with this question!
We've got a group of residential units currently under construction. Someone has expressed interest in taking a head lease over the units (these are purpose built student accommodation units) and have asked for the rent and terms however, this is the first time we've dealt with a head lease scenario so not really sure about a few things.
Term wise we were thinking along the lines of 5yrs with an option to renew for a further 5?? That a reasonable term?
Rent wise, by them taking on a head lease would i be correct in assuming they are looking to make a margin on these units so we shouldn't be asking for market rent otherwise they'll have no room to move and wouldn't be worth their while?
Also in relation to the rent, anyone know whether gst will be applicable and whether the rent can be increased along with the cpi each year?
As you can probably tell i'm completely clueless and just looking for some feedback from those more experienced in this type of thing. Its residential security but commercial terms so its confused the heck out of me as i have never dealt with any commercial stuff before.
Any advice much appreciated! Have contacted a couple of PM's and awaiting their feedback also...haven't heard back from any so hoping SS'ers can comment on anything that may help?
Thanks in advance!!
We've got a group of residential units currently under construction. Someone has expressed interest in taking a head lease over the units (these are purpose built student accommodation units) and have asked for the rent and terms however, this is the first time we've dealt with a head lease scenario so not really sure about a few things.
Term wise we were thinking along the lines of 5yrs with an option to renew for a further 5?? That a reasonable term?
Rent wise, by them taking on a head lease would i be correct in assuming they are looking to make a margin on these units so we shouldn't be asking for market rent otherwise they'll have no room to move and wouldn't be worth their while?
Also in relation to the rent, anyone know whether gst will be applicable and whether the rent can be increased along with the cpi each year?
As you can probably tell i'm completely clueless and just looking for some feedback from those more experienced in this type of thing. Its residential security but commercial terms so its confused the heck out of me as i have never dealt with any commercial stuff before.
Any advice much appreciated! Have contacted a couple of PM's and awaiting their feedback also...haven't heard back from any so hoping SS'ers can comment on anything that may help?
Thanks in advance!!