RENT
Always referred to on a monthly basis and payable in advance. Rent usually excludes Utilities, Government Rates, Government Rent and Management Fees.
     
  RATES
A tax paid on the occupation of property and generally paid by the Tenant Levied as percentage of a Government Fixed Ratable Value (presently approximately 5% of the rental). 		 
     
  MANAGEMENT FEES
Normally covers building maintenance, security and cleaning service. Fees vary according to the standard of the building and facilities available. Generally charged in addition to rent and payable by the Tenant 		 
     
 

BANK CONSENT
The mortgage deed executed by the owner of a property usually contains a covenant that prohibits leasing unless with the prior written consent of the mortgagee. In the event of an owner failing to repay the mortgage loan and the mortgagee taking possession of the property, the tenant will not be able to continue to occupy the property and loss and inconvenience may result.

If the relevant property is a mortgaged property, the prospective tenant should be suggested to request the landlord to obtain the required bank consent and be explained the risks involved in renting a property without bank consent for the prospective tenant's consideration by their agent.

 
     
  CAR PARKING
Provision for one carparking space usually includes in the rent for properties with rentals in the higher bracket ($40,000-Up), but occasionally for less expensive properties too. May be open or covered spaces. 		 
     
  FLOOR AREA
For leasing usually quoted on a gross basis. Definition can vary as to what is included in the net usable area. Gross area generally includes common parts. 		 
     
  FIXTURES & FITTINGS
Residential premises are generally let unfurnished. Kitchens are usually fitted but often not equipped with appliances. 		 
     
  RENT FREE PERIOD
Depending on market conditions, can be given by the Landlord to allow Tenants to decorate their premises, should it not be done by the Landlord. Rent Free Period are more common in commercial leases where Tenants usually carry the cost for renovation. 		 
     
  TENANCY AGREEMENT
Format varies but is usually based on the Tenant looking after the interior and the Landlord the structural parts of the premises. Should any alterations be made to the interior by the Tenant the Landlord normally expects the premises to be reinstated to its original condition on the expiry of the lease. 		 
     
  DURATION OF TENANCY (LEASE)
Is usually 2 years. Occasionally 3 years may be obtained. 		 
     
  PROTECTION OF TENANCY
See Landlords & Tenants consolidation Ordinance available at Government Publications Office. 		 
     
  THE TENANT

  • Tenancy Agreements are either signed by individuals, as a personal lease or by a company, for a company lease.

  • A Personal Lease is signed by an individual and his name or joint-names appears as the Tenant in the Tenancy Agreement. Tenant personally responsible for matters concerning the property.

  • A Company is the legal Tenant in a Company Lease and is responsible for matters concerning the property. The Occupant of the premises is usually the bona fide Employee of the Company.

 
     
  BREAK CLAUSE (EARLY TERMINATION)
Normally requested by the Tenant. Landlords may grant a Tenant the option of early termination of the Tenancy by giving prior written notice. This provision is negotiable and normally depends on prevailing market conditions. 		 
     
  DEPOSITS
  • a) Security Deposit
    Usually equivalent to 2 months rent and retained by the Landlord for the duration of the Tenancy. This will be returned in full without interest provided there is no thing damaged in the premise.

  • b) Holding Deposit
    Paid by the Tenant to secure option to lease the premises whilst details of the Tenancy Agreement are being negotiated. It is advisable to receive written confirmation that this deposit is refundable.
 
     
  STAMP DUTY
Payable on all Tenancy Agreements. Cost usually shared equally by the Landlord and Tenant.
Monthly Rental X 3% + $2.5 = half share of the Stamp Duty. 		 
     
  LEGAL FEES
Charges are based on Law Society scales. Each party generally pays their own costs, however, fees may be shared if both parties engage the same Law Firm. 		 
     
  AGENCY FEES
Property agents who locate premise and help to negotiate and conclude lease/purchase agreements charge a fee for their services. The purchaser / lessees pays these fees by 1% of sale price or 50% of the month rental.