We get this question a lot and it’s a tough one to answer! Not because we can’t – it’s just difficult to answer such a general question. There is no hard and fast answer to this question as it will depend on a large number of factors. In addition to rent, there are all sorts of costs that you would have to incur when you enter into a Retail Lease. These are both ongoing or one-off. Generally however you would incur the following outgoings:
- Water Rates
- Local Council Rates
- Land Tax
- Electricity Rates
- Local Council Parking Levies (if premises offer council parking)
- Local Council Outdoor Seating License (if premises have outdoor seating)
- Public Liability Insurance
- Glass Replacement Insurance
- Building Administrative and Maintenance Fees(if premises is part of strata)
- Marketing Fees (if premises is part of a larger shopping complex)
Outgoings will change depending on:
- Floor space
- Value of the premises
- Equipment on the premises
- What you are doing
The above is a non-exhaustive list of matters. As stated there is no hard and fast answer to “what is expected” and “how much” it is expected to cost as these matters will change depending on where you want to lease. This is a matter for homework and you’ll likely get these answers once you’ve properly investigated the location of where you want to lease. But this isn’t a chicken and egg dilemma – in NSW the Retail Leases Act says that the landlord of retail premises must issue a “disclosure statement” to all potential lessees that sets out what these costs are before the lessee enters into the lease agreement.
Retail Leases can be complex – if you are entering into one, give us a call and we’ll guide you through the process and assist you with your transaction.
Do you run a business? What sorts of legal issues do you normally encounter when running your business? For that matter, when was the last time you saw a solicitor? Would it be before you started your business – or only after you encountered a problem?
Solicitors are a little bit like doctors. You usually only ever see a doctor when you are sick – when something has gone wrong with your body. In the same way, businesses usually see solicitors when something has gone wrong. That shouldn’t be the case.
It is understandable that a majority of businesses are averse to seeking legal advice from a solicitor. Legal advice is often seen to be intrusive, complicated, annoying, and more often than not – expensive. However, the reality of the situation is that in order for your business to be successful, you need to get your business in order – and that includes sorting our your legal obligations as well as seeking ways in which your business can better protect itself. And the sooner you can do that, the easier it is to deal with problems in the future.
What sorts of matters do businesses commonly deal with? Terms of Trade, Trade Practices, Compliance with ASIC, Intellectual Property, Confidentiality, Leases, Bad Debts, Contracts, Disputes… the list is innumerable. Yes, you can ignore it or attempt to deal with it on your own. However the bottom line is that if something goes wrong, a significant sum of money can be spent attempting to rectify the problem. In contrast, investing a little time and money into getting some advice beforehand can greatly reduce the chances of such an incident occurring.
After all, if you have peace of mind in these aspects, you can better concentrate on running your business.
We want you to succeed – so if you ever need any help or a quick consultation and review of your business practices – please do not hesitate to call us!