Lease Make Good – Pre Nup
Headaches and protracted negotiations at lease expiry could be avoided by well drafted Make Good clauses and thought out strategies prior to lease commencement.
Building owners and tenants can be poles apart in their understanding and interpretation of repair, maintenance and other make good related clauses. This in turn can lead to significant unforeseen costs, disputes and delayed income.
Attention to the lease definitions and obligations together with some good asset management strategies can help to avoid such situations.
Your lease and make good check list in this regard could include some thought around the following:
Premises
- What are the physical elements and spaces under the obligation of each party?
Commencement Date
- Does the obligation for repair, maintenance and make good extend to any previous terms of occupation perhaps under an earlier lease or option?
Condition as at Commencement
- If the tenant is expected to return the property back to a condition ‘as at commencement’ – can anyone recall what this looked and felt like?
- Is it well defined and recorded in a schedule of condition with plans and photographs? Continue reading
Property Tax Profiling
Over the last 30 years or so the quantity surveying industry has waxed lyrical about all things property tax deduction related, the most recent being property tax profiling.
Obviously, quantity surveyors would like to think as an industry we’ve added some value and therefore made a very positive difference to our clients after tax bottom-line.
We have sliced and diced property tax every possible way, providing the platform for balance and maximum return from your property investments and we’ve also tried to address the perception that you can’t afford it. An affordability study needs to address a variety of property information to provide a balanced view of how your asset might perform over a period of time and how you can influence that performance. Continue reading
