Property Lawyers help clients deal with a wide range of property-related issues including buying, selling, subdividing, transferring titles, council and building restrictions, tax implications, approval processes, and restrictive covenants and easements.
Understanding Commercial Property Leasing Differences
Residential and commercial real estate investments work similarly with you renting the property and receiving a rental income. If you need then you can hire property lawyers in Brisbane online.
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However, there are some key differences:
Longer leases – compared to a residential lease (usually 6 to 12 months) a commercial lease can be 3 to 5 years plus options.
This means you can retain tenants for longer, providing guaranteed rental income over a longer-term.
Possibly more extended vacancy – the downside is that it is likely to take longer to find a new tenant, and you may not receive rental income for a more extended period. You may also need to offer various incentives (e.g. rent-free period, cash contributions towards fit-out) to attract tenants, which can be costly.
Fewer Expenses: Unlike homeownership, expenses such as council rates and charges ( including water), body corporate expenses, property management expenses, insurance, utilities, and land tax ( not retail leases) are usually paid by the tenants
GST – Unlike residential property, most commercial property rentals are subject to GST. You need to speak to your accountant to understand if you register for and collect GST.