I’m leasing a property – when can I have possession? Prior to handing over the premises to the Lessee, Fitzpatricks Commercial requires a copy of the signed lease, payment of the holding deposit, security deposit and lease preparation fee (where applicable). Fitzpatricks Commercial also requires a copy of the insurance certificate of currency in relation to Public Liability Insurance (minimum $20m) and Plate Glass insurance …
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What other fees are involved in leasing a commercial property? In a commercial lease situation, the Lessee is generally required to pay lease preparation costs and costs associated with searches (eg: credit or company check). In a retail lease situation, the Lessee is not able to be charged a lease preparation fee. Generally, the Lessee is also required to pay their own utility services …
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What is the difference between a holding deposit and a security deposit? A holding deposit is used to hold the premises for the prospective tenant until a lease agreement is signed. Should the lease not proceed the Lessor may use the funds to cover costs incurred eg: legal fees. Once the lease agreement has been signed the holding deposit is allocated towards rent. A security …
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Will the rent increase over the period of the lease? It depends what is negotiated and what is in the lease. Most leases have either fixed rate or CPI increases each year and market reviews are common upon exercising an option for a further lease period. We are happy to explain these processes to you at any stage.
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Are there penalties for overdue/late rent? If the lease agreement allows, interest may be charges on overdue monies. This will be clearly stated in your lease agreement.
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