Net V's Gross when considering leasing property

Net Lease                                                         money

A net lease requires the tenant to pay, in addition to rent, some or all of the property expenses known as outgoings. These include expenses such as strata levies, council rates, water rates, land tax, insurance, maintenance, repairs, utilities, and other items. GST is charged on both rent and outgoings.

Gross Lease

In a gross lease, the tenant pays a flat rental amount which GST is general charged on top of. Further expenses you are to take into consideration are electricity, water, telephone, internet, waste, cleaning and any other costs associated with running your business.

 

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