Which property costs more with outgoings and maintenance?
Residential
Why?
When bills for outgoings and maintenance become due for residential properties, things like council rates and repairs for example, it’s usually the landlord’s responsibility to pay them.
When bills for outgoings and maintenance become due for commercial properties on the other hand, this can be the tenant’s responsibility to pay them.
So while leases all vary from property to property, having outgoings as the tenants responsibility, whether part or all, is more common with commercial leases.
It just comes down to whether the lease is a net lease or a gross lease.
In short, net leases generally mean the tenants pays the rent plus some or all of the outgoing expenses related to the property. This includes things like water and council rates, land tax, insurances, strata levies, most repairs etc.
Gross leases mean the tenant pays just the rent and no or minimal outgoing expenses.
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