FREQUENTLY ASKED QUESTIONS

COMMON GENERAL QUESTIONS

HOW DO I PAY YOUR AGENCY?

LEASING QUESTIONS

How Much Do I Need To Pay When I Sign The Lease?

How Much Is A Standard Commercial Leasing Deposit?

How Much Is A Standard Commercial Bond?

How Are Commercial Leases Paid?

Who Pays For The Lease Contract?

What Forms The Outgoings Cost?

When Do You Need A Survey Plan?

Do I Need Insurance?

What Is A Certificate Of Currency?

SALES QUESTIONS

When Is An Australian Tax Office (ATO) Clearance Certificate Required?

When Is Gst Payable?

PROPERTY MANAGEMENT

Please contact your property manager for any questions or refer to your Under Management information pack

 

COMMON GENERAL QUESTIONS

HOW DO I PAY YOUR AGENCY?

Please make your electronic transfer to the below accounts, and allow 2-3 days for the funds to clear.

Please use your invoice number or property address as the reference.

 

   Sales & Leasing Deposits:
                    BSB: 084209
                    A/C: 148023807
 
    Advertising Payments: 
                    BSB: 084209
                    A/C: 147690720
 
    Property Management Tenants: 
                    BSB: 084209
                    A/C: 151511449
             

LEASING QUESTIONS

Below are some of our most asked questions about the leasing process. Please note that as all properties vary, any specific documentation (such as lease agreements) takes precedence over these general guidelines.

 

HOW MUCH DO I NEED TO PAY WHEN I SIGN THE LEASE?

Your total obligation will be outlined in your lease agreement, but as a standard guide typically you will need to pay: a leasing deposit (prepaid rental obligation), and a commercial bond (to be held until the end of your tenancy). These amounts are typically payable at the signing of the lease and will need to be accounted for by our Agency as cleared funds before key handover or any access to the tenancy.

 

HOW MUCH IS A STANDARD COMMERCIAL LEASING DEPOSIT?

A leasing deposit is a prepaid rental obligation and can vary depending on the lease agreement.

Standard commercial deposits are typically: 2 months net rental + outgoings + GST. This deposit pays your rental obligation for the first months of your tenancy and typically you will not be required to meet your rental obligation until this deposit has been exhausted.

 

HOW MUCH IS A STANDARD COMMERCIAL BOND?

Bond amounts vary depending on the property type. A reasonable commercial figure is typically the value of 2 or 3 months total payable amount (net rental + outgoings + GST).

It is important to note that our Agency do not hold cash bonds for the term of the lease. Commercial bonds are disbursed to the property Owner after key handover, to be returned at the end of the lease. This practice differs from residential bonds and is in line with standard commercial practice.

 

HOW ARE COMMERCIAL LEASES PAID?

Commercial leases are typically paid by the month and are payable one month in advance. You should be issued an invoice which will typically include monthly rent and monthly outgoings. It is the industry standard to use an electronic transfer several days before the due date to allow for any transfer delays. It is your responsibility as a tenant to ensure that the funds are available and cleared by the due date. 

 

WHO PAYS FOR THE LEASE CONTRACT?

We as an agency are able to write contracts for select property types as part of our service without any additional cost to the owner or tenant.

If the owner of an industrial, commercial or office tenancy specifically requests a solicitors lease to be drawn up then the tenant typically pays the cost of lease preparation. If the property falls under the retail shop act then the retail agreement is typically at the owners cost.

 

WHAT FORMS THE OUTGOINGS COST?

Outgoings typically consist of the costs of running the commercial site such as: council rates, insurance premiums, water/utilities bills, land tax, management fees, repair costs, scheduled maintenance, fire equipment servicing and any non-capital expenditure. The outgoings are typically an estimate of the next year’s utility bills and fees, based on the actual costs of the previous year.

 

WHEN DO YOU NEED A SURVEY PLAN?

On a standard 3 year lease no survey plan or registrations costs apply, unless specifically requested by the tenant.

For a 5 year lease with a 5 year option, the lease must be registered on the title deed. If a survey plan is not already available the cost of the survey plan and/or registration costs are the tenant’s responsibility.

 

DO I NEED INSURANCE?

As a tenant you are responsible for insuring the fitout of the tenancy (including any glass partitions) as well as your equipment and stock. Property types and tenancies vary but the rule is that the landlord is not in any way responsible for anything but the shell of the building, even if the fitout was existing.

 

WHAT IS A CERTIFICATE OF CURRENCY?

A ‘Certificate of Currency’ is a standard one page document supplied by your insurer and nominates your level of coverage and dates that coverage is applicable. It may be important to note that it is a standard requirement to supply a copy of your current insurance documentation to your commercial landlord or property manager.

 

SALES QUESTIONS

WHEN IS AN ATO 'CLEARANCE CERTIFICATE' REQUIRED?

[NOTE: applies until 30/6/17] If a property’s value exceeds $2,000,000 (excluding GST) all Australian residents need to produce an Australian Tax Office (ATO) ‘Clearance Certificate’. If this is not provided 10% of the purchase price will be withheld at the settlement of the property. Forms can be submitted with the ATO via their website and are valid for 12 months.

[Any contracts for sale entered into after the 1st of July 2017] If a property’s value exceeds $750,000 (excluding GST) all Australian residents need to produce an Australian Tax Office (ATO) ‘Clearance Certificate’. If this is not provided 12.5% of the purchase price will be withheld at the settlement of the property. Forms can be submitted with the ATO via their website and are valid for 12 months. See more at: https://www.ato.gov.au/FRCGW

 

WHEN IS GST PAYABLE?

Typically GST is payable on commercial property sales, however some exceptions can apply. Please consult your solicitor and accountant to advise on your individual situation.