Commercial Leasing

Leasing management

Leasing management includes:
  • searching for tenants
  • advertising the property for lease
  • negotiating the terms and conditions with prospective tenants
  • collect from tenant first instalment of rental, bond and any other monies due to the Landlord at the commencement of the lease
  • complete and serve forms and notices as required by the Retail and Commercial Leases Act 1995 (including Disclosure Statement).A leasing manager has knowledge of the current market and can advise the lessor accordingly.

Property management

Property management is the operation, control and oversight of a commercially leased property including:

  • leasing management as per above
  • ongoing negotiation with tenants regarding the lease
  • invoicing lessee for rental and outgoings including GST
  • collection of rental and outgoings
  • collection of rental and outgoings in arrears, including letters of demand
  • CPI increases
  • review to market as per the lease
  • managing maintenance and repairs• budgets
  • advises lessor regarding responsibilities as per the lease (eg which issues are of a capital nature and therefore the lessors responsibility unless specified otherwise in the lease)
  • knowledge of legal and financial obligations
  • experience regarding risk and obligations• regular inspections
  • monitoring leases
  • following up lessee’s obligations
  • following up lessor’s obligations.

Commercial leasing requirements and obligations

The requirements and obligations are found in:

  • Retail and Commercial Leases Act 1995
  • Retail and Commercial Leases Regulations 2010
  • The leasing requirements include both legal and financial obligations and include:
  • Provision of copy of proposed lease to any prospective lessee when negotiations begin, including an estimate of outgoings• Appropriate lease documentation in written form
  • Disclosure Statement prepared by a solicitor • Various requirements if the lease is situated in a retail shopping centre
  • Provision of audited statements for outgoings annually (within 3 months after end of accounting period)• Lessees in a shopping centre have preferential right of renewal when lease expires
  • Provision of estimate of outgoings one month before each accounting period• Leases must be for a minimum of 5 years including any options to renew
  • Apportionment of maintenance costs.

Commercial Leasing Policy

The Commercial Leasing Policy covers the requirement that all commercial leases (excluding peppercorn or low value leases) require property management by an agent, unless the Church Council or Uniting Church organisation is granted exemption by Property Services.