Landlords…how do you keep the right Tenancy Mix?
You know as a landlord when it comes to leasing and managing property, the right tenancy mix is critical to the income that you create. Without a successful tenant mix, your property’s maximum investment performance will not be achieved leaving you bewildered.
There are many things to balance in the prevailing economic conditions and local property market when trying to manage the tenancy mix. Deciding what a tenant can actually do in the premises is very important. You need to ensure a new tenancy complements, rather than competes with, existing tenancies. This means when defining the permitted use of a new tenancy you need to specify what they can and can’t do. For example they cannot sell muffins if there is already a specific muffin shop in the centre.
The tenant needs to be aware of any restrictions and you MUST ensure this is disclosed in your Lessor Disclosure Statement at the commencement of the Lease.
I recommend making sure the permitted use for your existing tenancies is reviewed each time a new tenancy is entered into. This will avoid any clashes with existing tenants in order to prevent any applications by existing tenants to the tribunal claiming you are in breach of exclusivity provisions in your Leases. It makes good business sense to have your leases reviewed by a Retail Leasing Lawyer.
If you have any questions about leasing your premises please call me, Peter Lee, on 3186 6666 for an obligation free conversation.