Leasing property comes with a lot of responsibilities, meaning it is critical for both owners and tenants to identify which laws, codes and taxes are attributable to your property, however, Broadway Property is there to assist you in navigating these.
When it comes to commercial property, here are some legal factors you should be made aware of:
Zoning Laws: Zoning laws can restrict the types of businesses allowed in an area, limiting potential uses for a property. Ensure you research your area to know your exact options.
Lease Terms: Tenants must carefully review lease terms, including rent structure, renewal policies, and escalation guidelines. Landlords need to construct their leases carefully, and prioritise that they and their tenants are adhering to outlined rules at all times.
Compliance with Codes: Commercial properties must comply with the Building Code of Australia (BCA), particularly when it comes to fire safety regulations, Work Health and Safety (WHS) laws, and accessibility guidelines. Check that the building meets all of the mandatory requirements outlined in the BCA, and raise safety concerns if necessary.
Environmental Regulations: Depending on the location of your property, there may be additional laws around environmental concerns such as pollution, waste management, hazardous material, and environmental protection. Both owners and tenants should follow specific guidelines.
Property Taxes: Land tax is standard for commercial property, with the amount depending on the property’s value and location. Council rates are another requirement, however, the financial responsibility of this is dependent on the agreement between the tenant and the landlord.
Insurance Coverage: For property owners, identifying the insurance types that are required for your property are essential for making sure your back is covered. Property insurance covers physical damage; business interruption insurance provides assistance for lost income and business expenses due to significant disruption, and public liability insurance is important for third party coverage. Tenants should also be aware of what insurance cover they have while operating in the property.
Broadway Property can help you understand legal considerations as well as manage your commercial property more efficiently to protect your interests.