What are outgoings?

When you’re looking to lease commercial property, it’s crucial to have a clear understanding of the responsibilities that come with negotiating a lease. One common practice among commercial property owners is passing on certain expenses, also known as “outgoings,” to tenants. These outgoings include but are not limited to things like council rates, body corporate fees, management fees, and utilities such as water. Additionally, the costs of maintaining shared areas like parking lots or gardens may also be included.

To know exactly what outgoings you’ll need to pay, you can refer to the lease agreement or request this information from the commercial agent. The lease agreement will specify the specific outgoings that tenants are expected to cover and the amount they need to contribute. For example, it might state that tenants are responsible for a portion of the properties expenses associated with maintaining shared spaces.

Before signing the lease agreement for a commercial space, it’s important for tenants to carefully review and fully understand its contents. This includes being aware of the specific outgoings they will be responsible for and how these expenses will be calculated and billed. If there are any uncertainties or questions, it’s always a good idea to seek guidance from a trusted professionals who specialize in commercial leases, such as a solicitor.

By having a solid grasp of your obligations as a tenant, you can make informed decisions and ensure a smooth leasing experience in the world of commercial real estate.