GST on Rental Payment
In the vast majority of cases the tenant will need to pay GST (Government Service Tax) on all rental payments. This currently stands at 7%. Tenants can offset the GST they pay against the GST they receive, provided they are GST registered.
Stamp Duty – always paid by the tenant
Stamp duty is payable on all lease documents and is always paid by the tenant at the time the lease is stamped. The amount of tax is fixed based on 0.4% of the total rent payable across the length of the lease. As a rough rule of thumb it works out to be around 15% of one month rental.
Legal Costs - tenant’s responsibility
The tenant normally pays both sides legal fees i.e. the tenant pays for the cost of the preparation of the tenancy agreement. Sometimes the landlord will use his in-house legal team and use their standard lease template so may only be charged an administration fee
The Tenancy Agreement will contain provisions for insurance liabilities. Tenants will normally be required to provide additional cover for contents and public liability.
Agency Fees - None
Corporate Locations' agency fees are paid by the landlords for the successful introduction of a tenant to their building even when it is recognized that we are acting for the tenant.
Tenants are required to lodge a cash deposit equivalent to 3 months gross rent, inclusive of service charge and government rates. The deposit is refundable at the end of the lease to the tenant, but without interest
Extra deposit money is normally an additional 3 months rental is required when the tenant paid capital is less than the equivalent of 6 months rental
Upon signing a binding offer/booking form or tenancy agreement the tenant is normally required to make an advanced payment equivalent to one month's gross rent inclusive of service charge and GST.
Property Tax / Government Rates
Property owners are liable to pay property tax. This is paid by the landlord but this is always recovered through a provision in the service charge. Any increase on property tax is usaully passed onto the tenant though the service charge