What is a Gross rent lease and NET rent lease?

GROSS RENT: - Owner Pays Outgoings

Gross rent, or a gross rent lease, is a real estate lease with a flat rate rent fee that includes rent and all outgoings and expenses associated with ownership and the property.

Outgoings and expenses are Strata (if applicable), Council Rates, Water Rates and Land Tax etc. A gross lease can be modified to meet the needs of the tenant/s.

A gross rent lease the owner pays the outgoings. A gross rent lease tenant would pay for Public Liability Insurance, Service/Maintenance to Air Conditioning Unit/S (annual service) and consumables. E.g. Electricity, water usage and additional Commercial contractor for Waste disposal. (If needed).

 

NET RENT: - Tenant Pays Outgoings

Net rent, or a net rent lease, is a real estate lease which a tenant pays a base rent fee amount plus paying one or more additional outgoings and expenses associated with ownership and the property.

A net rent lease tenant would pay for Strata (if applicable), Council Rates, Water Rates, Land Tax, Public Liability Insurance, Service/Maintenance to Air Conditioning Unit/S (annual service) and all consumables. E.g. Electricity, water usage and additional Commercial contractor for Waste disposal. (If needed).

What is an Expressions of Interest Sale (EOI)

It is an option for selling or buying property. This is where a non-binding submission (purchase price offer) is presented by the interested parties by a set date and time for consideration by the seller. Further negotiations are common when seller expectations are not met. This is typically called For Sale by Expressions of Interest (EOI). - Source From www.reinsw.com.au

What is Going Concern?

Going concern is a term used for commercial property being sold as a GST-free sale. It may be treated as going concern when the commercial property is leased when the property is being sold.

GST does not apply to a property when you sell it as part of a GST free sale of a going concern.

If you sell property as a GST-free sale of a going concern you are not liable for GST on the sale and the seller and purchaser may be able to claim GST on other expenses that relate to selling and/or buying the property. This claim includes solicitor fees.

A property can be sold as going concern if all the below apply:

  • Payment is made for the supply
  • The purchaser is registered (or required to be registered) for GST
  • The buyer and seller have agreed in writing that the sale is of a going concern
  • The supplier supplies all things necessary for the continued operation of the business
  • The supplier carries on the business until the day of supply.

A property that is part of a sale of a going concern can include:

  • The premises, together with the assets and operating structure of the business
  • A fully tenanted building, where the property and all leases, agreements and covenants are included in the sale
  • The sale of a partially tenanted building, where both of the following apply
  • The vacant part of the building is either being actively marketed for lease or undergoing repairs or refurbishment
  • All leases, agreements and covenants are included in the sale.

Source From www.ato.gov.au

How much is a Standard Commercial Bond?

A standard commercial bond is equal to 3 months’ rent incl GST.

What is the Leasing Process?

  • The leasing process with M5 Industrial Property Services although thorough, is designed to be quick and pain free.
  • Once you have inspected and feel that the property will suit, you will be asked to complete one of our standard ‘offer to lease’ templates that contain a range of commercial terms as well as requesting information on yourself and your company.
  • Once your offer is accepted and the required background checks completed, we will provide you with a ‘steps to proceed’ document which will require funds to be transferred to the M5 Industrial Trust Account.
  • Once funds are received, a lease document will be prepared along with a comprehensive ‘ingoing inspection report’.
  • Please note that before keys can be handed over, all funds must be received, lease documents and ingoing inspection report be signed, appropriate insurances supplied and 100 points of ID provided.
  • After more than 20 years of leasing thousands of Industrial properties all over Sydney metro, M5 Industrial and its team are here to ensure a smooth transaction for all parties.

How can I pay my Rent?

We offer several options to pay rent. The tenant has no excuse for late payments. Rent can be paid the following ways - DEFT, POSTbillpay, BPay, Direct Bank Deposit and DEFT Mail Payment.

www.deft.com.au

What is Zoning?

Zoning is one way the governments can regulate the use and development of land and/or buildings and control growth patterns and characters of areas.

What is 3 Phase Power?

3 phase power refers to the power supply coming into the property by way of underground or overhead power from the street. 3 phase power is typically used in commercial/industrial situations and large homes with multiple large electric appliances drawing larger currents of electricity.

When will I receive my Rent Money into my Bank Account?

On the 15th and 30th/31st of the month. Unless those dates fall on a public holiday or weekend, in which case all monies held will be paid the working day before or the following working day, unless instructed by the landlord. A statement is issued at the same time of receiving a payment outlining the debits and credits for that month.

What is Commercial and Industrial Real Estate?

Commercial real estate are retail shops and offices. Industrial real estate normally refers to factories and warehouses.

What is the difference between a Warehouse and a Factory?

A warehouse is primarily for storage and distribution. They need to have a high roof line for pallet racking and other storage (6 meters minimum) and good access for large vehicles carrying containers.

A factory is for manufacturing. They are less reliant on height depending on the manufacturing industry involved.

Source From - www.commercialrealestate.com.au

Have any questions that are not covered here, where do I go for help?

Contact us via email office@m5industrial.com.au or call 1300 761 764 and we can help you.

What areas/suburbs does M5 Industrial Property Services cover?

M5 South West

Campbelltown, Leumeah, Minto, Ingleburn, Prestons, Narellan, Smeaton Grange, Gregory Hills, Glenfield, Macquarie Fields, Crossroads, Camden

Fairfield

Fairfield East, Yennora, Guildford, Guildford West, Granville, Chester Hill, Villawood, Berala, South Granville, Sefton, Regents Park, Smithfield

Inner West

Marrickville, Turrella, Dulwich Hill, Kingsgrove, St Peters, Tempe, Sydenham, Enmore, Kogarah, Petersham, Arncliffe

M5 South

Chipping Norton, Moorebank, Liverpool, Prestons, Warwick Farm, Lansvale, Casula, Crossroads, Leppington, Ingleburn

Strathfield South

Strathfield South, Enfield, Belfield, Punchbowl, Greenacre, Belmore, Lakemba, Burwood

Bankstown

Padstow, Bankstown, Revesby, Milperra, Condell Park, Greenacre, Chipping Norton, Bankstown Airport, Chester Hill, Villawood, Punchbowl, Mount Lewis, Yagoona, Chullora, Belmore, Belfield, Lansvale, Riverwood, Regents Park, Sefton, Auburn, Lakemba, Wiley Park, Strathfield South

St George

Mortdale, Peakhurst, Kingsgrove, Riverwood, Beverly Hills, Hurstville, Carlton, Kogarah, Rockdale, Roselands, Bexley, Bexley North, Clemton Park, Turrella, Wolli Creek, Earlwood, Arncliffe, Belmore, Lakemba, Wiley Park, Punchbowl, South Hurstville, Hurstville, Penshurst, Blakehurst, San Souci, Ramsgate, Banksia, Tempe, Beverly Park

Sutherland Shire

Heathcote, Menai, Caringbah, Taren Point, Kirrawee, Sylvania

M4 Motorway West

Wetherill Park, Smithfield, Guildford, Guildford West, Yennora, Arndell Park, Granville, Penrith, Minchinbury, Huntingwood, Rooty Hill, Eastern Creek, Prospect, Merrylands, Wentworthville, Seven Hills, Blacktown, Woodpark

M4 (Silverwater)

Lidcombe, Auburn, Regents Park, Sefton, Silverwater, Clyde, Rosehill, Camelia, Homebush, Regents Park, Sefton, Rydalmere, Rhodes, Parramatta, Granville, Guildford

South Sydney

Alexandria, Botany, Beaconsfield, Zetland, Waterloo, Banksmeadow, St Peters, Eastgardens, Matraville, Port Botany, Sydney Airport, Roseberry, Marrickville

 

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