Had some questions from a tenant looking at a new premise Thought i would share the answers 1. The location is advertised for $35,000 + $9000 outgoings. By outgoings I assume they mean all utility bills (water, gas, electricity etc)? Is there opportunity to renegotiate that price? Say down to 29-30k? Yes to all of the above plus rates , land taxes , insurance , management fees ,repairs etc You need to get a listing of all the outgoings Yes if the place has been on the market for some time or there are lots of vacancies in that area then you certainly get a sweetheart deal ...maybe one month for each of the year of the lease plus 2. What length options do I face? Ideally as short as possible as I am unsure if the practice will be a success or not, is 3 years common? Yes same again as before if there are vacancies in the area you will be able to sign up a short lease with many ROR (Rights of renewals) 3. The shop will need a fitout, how can I ask about this? Firstly, is it my responsibility? Or can I expect the landlord to do some of the fitout? Yes same again as before if there are vacancies in the area you will obtain a free fitout ...you will need to sign a longer lease of course 4. Are there any other issues I need to be aware of? Obviously I will take the lease to a solicitor, but anything that you've come across that might help me? I've also heard that there have been a few tenants come and go, is this an issue? Or does that just mean the tenants went out of business? You need to see if 1:If all the services are onsite 2: Council have approve the building for your needs 3: Sufficient carparking 4: Area to expand/reduce in the future dependent on business Have you looked elsewhere to see what the rentals are like ? If not ring around and visit as many premises with agent as possible Get a real feel for the rentals and what the outgoings are before you make an offer
It may also be worth getting a leasewise report. They have been advertising these on the radio lately. Not sure if any good, but imagine you could used one to negotiate the lease down.
