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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?
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?
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