If you lease premises, you need to include your rental income in your tax return. You may also be liable for goods and services tax (GST) and entitled to GST credits. …

What is a premium on a commercial lease?

A premium is the price a tenant pays to a landlord to purchase a lease. A premium is most often taken in return for the rent being reduced to what would otherwise be payable.

Who pays outgoings in a commercial lease?

tenant
While each lease is different, commercial property outgoings – which are expenses incurred by the landlord in the operation, maintenance or repair of the leased premises – are generally paid by the tenant, in addition to rent and usual bills like power and phone.

Do commercial tenants pay building insurance?

The lease should state who is responsible for arranging and paying for buildings insurance. With most leases, the landlord arranges and pays for buildings insurance but then passes on the costs (or an appropriate proportion, in shared premises) either as part of the service charge or as a separately itemised charge.

What do you mean by commercial lease agreement?

A commercial lease agreement is a written document between a landlord and tenant for the purpose of renting an office, retail, or industrial space—the landlord allows the tenant to use the property for commercial (or business) purposes in return for rent.

What do you need to know about commercial leasing?

13 terms you need to understand before signing your commercial real estate lease. 1 1. Incidental expenses. Your costs on top of base rent. These can include property tax, insurance, utilities, maintenance, common area costs and 2 2. Common area maintenance. 3 3. Gross rent lease. 4 4. Modified gross lease. 5 5. Net lease.

What are the delivery conditions for a commercial lease?

Let’s dive into a few of the most common delivery conditions for commercial leases. A vanilla shell lease, or whitebox condition, can be one of the sweetest deals you get.