Commercial lease renewal fees VIC

Hey all, can you please help me out. We have just completed a 5 x 3 lease agreement and we want to renew and have been offered 3 x3 renewal. Property manager is a dominant real estate in area. We as the tenant, have been charged $495 lease renewal fee. Isnt this the landlord who should attract a renewal fee for property management and is this price reasonable for sending out an identical contract as original for us to date and sign?

 

Look at your lease but normally a commercial tenant pays for all leasing and management costs.

 

So what is the going rate for a lease renewal then? $495 seems like a steep fee to send out mail

 

If its a "renewal" being negotiated, isn't it pretty much negotiating a new contract and pretty much anything goes?

Its sounds weird you me that you've just agreed to 9 years worth of rent and fees but $495 is a deal breaker now...

Btw that works both ways too, so maybe you can take that back to the lessors...

 

@Nic22 Is it a commercial or retail lease?

($495 sounds cheap in my book - I gather that it's only a month's rent).

 

ok so this is not a deal breaker it is a question. Contract is same as previous. It is an industrial factory so no retail. I am just asking how does a reissue of contract attract $495 of costs? When we got an email, will you renew, contract sent in mail, invoice sent at same time for $495. Dont know where rent costs $495 a month, we are paying $2200.

 

Then say "no thanks" to the lessor. You're negotiating a new contact. Complain to the person you're negotiating with.

 

I would be checking the standard form lease which has been issued to confirm whether you are in fact liable for lease preparation costs . It is not a retail lease so legals may be passed on to the tenant - the wording in the lease will determine whether this is covered (if it is defined as legals but Lease Preparation costs isn't, I'd be arguing for it to be a Lessor cost).

I was assuming that the $450+gst was the letting fee, super cheap rent.

 

Scott No Mates Thanks. Was just after clarification so appreciate your answer