Gross vs Net Lease Outgoings Comparison
Explore the absolute financial variations between a gross lease agreement and a net lease agreement.
With this tool, tenants can estimate their outgoings contributions including municipal council rates, body corporate levies, water utility charges, land tax allocations, and general property insurance costs. It compares lease mechanisms side by side to expose hidden tenant expenses.
Frequently Asked Questions
What outgoings is a tenant responsible for in a net lease?
Under a standard commercial net lease, tenants usually cover proportionate shares of council rates, water rates, building insurance, land tax (subject to retail legislation), property management costs, and central HVAC or elevator maintenance outgoings.
Is land tax claimable as an outgoing from retail tenants in Victoria or NSW?
In Victoria and South Australia, retail leases legislation strictly prohibits landlords from passing land tax liabilities onto retail tenants. In New South Wales, Queensland, and Western Australia, passing land tax to retail tenants is permitted, provided it is calculated on a single-holding basis.
Disclaimer: The estimations and rules detailed on this platform do not constitute legal or financial advice. Always verify metrics with a certified property professional, licensed accountant, or qualified commercial lawyer before entering into or executing any lease contract.