industrial leases - glass repair and GST

Discussion in 'Commercial Property' started by tang, 15th Apr, 2015.

  1. tang

    tang Member

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    hey guys, i have a quick question i cant find the answer to.
    normally, does a tenant have the onus to replace glass in a factory lease or is it up to negotiation?
    i have an onerous clause which states the tenant will reimburse GST that the landlord incurs from time to time. i find this clause onerous but i am no expert in leases.
    could someone please let me have their expertise?
    thanks!!!!
     
  2. Propertunity

    Propertunity Real Estate Buyers Agent

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    In most cases of commercial / industrial leases that I've seen, the tenant pay for everything - even the LL's Land Tax.
     
  3. chilliblue

    chilliblue Member

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    With the leases that I work on, yes you would be normally responsible but only if it is written into a signed lease.

    Doesn't only apply to factories but all commercial and industrial leases.

    Any other questions, just PM.
     
  4. Scott No Mates

    Scott No Mates ...and people wonder why?

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    Glass is usually covered off in the public liability & plate glass insurance clause.

    GST is only recoverable if the lessor is registered for gst or has produced an invoice for the correct amount (doesn't mention gst).
     
  5. tang

    tang Member

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    I would of thought so to but in the absence of such a insurance clause
    Thank you for ur clarification and responses all!
     
  6. Scott No Mates

    Scott No Mates ...and people wonder why?

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    That's the difference between using one's own vast knowledge of leasing (as a tenant) & relying on their solicitors for commerciality vs using a tenant advocate to negotiate beyond the headline rate (why would a tenant want to pay any more in outgoings than necessary/anything at all)? LT is a charge on the owners and adjustments should be negotiated so that they are not paying more than necessary for a comparable property should the lessor be structured to be paying LT on all of their holdings.

    Eg: Leases of crown owned property attracts LT in the hands of the occupier (if not a government entity) however a lower rent is offered to compensate for the land tax levied on the tenant (who generally squeals when hit with a LT assessment).