Passing on outgoings.

We are both commercial landlords and tenants.

As a tenant I have always paid outgoings - insurance and rates. My question here is relating to council early payment discounts, are we entitled to them if we pay the landlord within the discount timeframe?

As a landlord we are in the process of drawing up new leases and intend to pass on ongoings (This was not part of the original leases when we bought the property). We are not registered for GST and own the property in our personal names. Will we be forced to register? what implications are there for being registered or not?

Thanks in advance for your replies.
 
Jandanat, when you think about the provision of the service, it may assist with the thinking. You in fact do not pay for them, you in fact reinburse the landlord. That is why, when the landlord issues an invoice, it attracts GST, even though, their may not have been GST paid by the landlord. The same applies with the discount for prompt payment. The Landlord makes the payment. If they choose to pay early or late, that is their choice. Does that assist. In relation to ownership and GST, my feeling is that you should consider at applying for an ABN. Your agent or accountant cans assist, so that you dont get outside the law.
Best wishes
 
Pass the outgoings on (except land tax for retail shop leases) and register.

You are not bound to stick with any old format lease- it is whatever is agreed between the parties. Get a lawyer to draw the lease up once you have a signed letter of offer (better yet see a lawyer before you sign anything).

Ring Qld Law Society and ask for a lawyer who does commercial property and leasing in your area or go off a recommendation. $300/hr is the going rate for suburban solicitors- get them to quote you as a lump sum figure for fees. Good luck.
 
We are both commercial landlords and tenants.

As a tenant I have always paid outgoings - insurance and rates. My question here is relating to council early payment discounts, are we entitled to them if we pay the landlord within the discount timeframe?

As a landlord we are in the process of drawing up new leases and intend to pass on ongoings (This was not part of the original leases when we bought the property). We are not registered for GST and own the property in our personal names. Will we be forced to register? what implications are there for being registered or not?

Thanks in advance for your replies.

Entitled to discount - really as a tenant you aren't entitled to any discount on bills unless its written into the lease, use discretion if its e.g. $2000 rates bill due 1st march, if paid by due date $200 off so $1800 I would say yes the landlord should only charge you $1800 plus gst. If the bill was due 1 march $2000 but if you pay 2 weeks early then $200 off I would say no you shouldn't get the discount because there is no requirement for the landlord to pay the bill ahead of time. If you are responsible for 100% of the bill why not ask the landlord to post it direct to you and you can pay it direct? or ask the landlord for the opportunity to pay the bill before the due date so you get the discounted rate? It would all be up to the landlord because I dont think you would have anything in the lease to cover this.

When you pass on outgoings if they are commercial tenants get your lease to include land tax. from 1 july 09 you can charge the tenants but it must be based on a SINGLE holding rate not a larger land tax rate if you choose to own more than one investment property. I think the gst/comment is best handled by a professional/accountant.
 
Why not pay the rates directly to the Council yourself if the landlord is too busy counting money to pay it on time for the discount?
 
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