Making money as a landlord – outgoing recoveries (PART 2)

In part one, there was discussion about how landlords can maximise their revenues by getting more money out of their tenants taking advantage of the many complex clauses in lease agreements, particularly those related to outgoing recoveries. Clauses related to outgoings definitions, audited outgoing statements, management fees, marketing and leasing costs and cost of a structural and capital nature were explored. This article continues this outgoings discussion but also broadens the scope into other ways that landlords can extract additional revenues from their tenants.

OWNERSHIP COSTS

With most commercial assets in major cities, landlords will own the physical buildings and the site on which it has been built outright. However, in some instances, the ownership only relates to the structure itself without full ownership of the site, with tenure controlled via ground leases or