Understanding costs associated with a Commercial Lease
When entering into a Commercial Lease agreement, it is important to understand who is responsible to pay for things like council rates, land tax, building insurance, maintenance and similar other costs.
In this video John Gallagher from Argon Law explains the difference between a Gross Commercial lease and a Net Commercial Lease. The former being where the responsibility for these costs lies with the landlord. The latter is where the tenant is responsible for all outgoing costs.
Commercial Leases can fall between these two extremes, where both the landlord and the tenant share the costs related to outgoings. The important thing is to know what is defined. Particularly for commercial landlords, as costs not covered by the definitions of the lease cannot have reimbursement sort from the tenants.
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