Electronic Payment by Tenant
Many leases now provide that the payment of rent by the tenant to the landlord is to be made by electronic debit from the tenant's account. The landlord should make sure that the lease provides that if the tenant changes its banking branch that it immediately notifies the landlord and makes certain that there is no gap in the payments by the tenant to the landlord.
Management Fee
The landlord, if it uses an offer to lease, should ensure that the offer provides for a specific administration fee on operating costs (generally, 15%), as it has been held that if the landlord does not do so, it is not entitled to claim for an administration fee.
Roof Replacement
Is a roof replacement a capital expenditure or is it a repair expense?
A landlord should be aware that if the roof of the shopping centre is replaced with the same quality roof, then the landlord can write off the replacement costs in that year, but if the landlord substantially improves the quality of the value of the roof, it must depreciate the cost over a period of years.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
