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Carparking leases & council rates

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  • Carparking leases & council rates

    We've recently leased several carparking spaces, at the current market rate, to our new commercial tenant for their customers to use.

    Our tenant has today come back to us asking how much this will increase their proportion of council rates costs by. Apparently, their previous landlord charged rates on top of the per carpark market rate.

    We've traditionally checked that the market rate per carpark fully covered rates, dep, resurfacing etc. and provides a reasonable return on the area. This approach made things easier than dividing up the carpark rates amongst multiple tenants. We do charge rates as par tof the opex for the building they occupy, but perhaps we've been under-charging on the carpark side?

  • #2
    What does the lease say ?
    OR you can tell me what version (if ADLS) and what alterations you have made .


    • #3
      Hi Beano. Our lease agreement for carparks treats the market rate price as being all inclusive. Given the tenant's comment, I was wondering if others have actually been adding additional costs (rates, power for lighting etc.) on top.


      • #4
        If the market comparison is a gross rental then I do not believe you can charge additional cost.