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Not all leases are created equal. And when it comes to commercial investing — the lease is everything.
In this episode of The Commercial Property Investing Podcast Australia, Arjun Paliwal (Founder of InvestorKit) and Chris Huxter (Head of Commercial) are joined by Allison from MMJ Real Estate, who brings her decades of experience to help demystify one of the most misunderstood parts of commercial investing: the lease.
If you’re a residential investor stepping into commercial property for the first time, this episode will save you from expensive mistakes, teach you how to structure smarter leases, and show you how to maximise your long-term returns.
🧠 What’s Covered in the Episode?
✔️ Why Retail Leases Are So Different
Learn how retail lease legislation (like Victoria’s Retail Leases Act) impacts tenants and landlords — and how certain uses (like dentists or psychologists) qualify as “retail” even if they’re service-based.
✔️ Level 2 vs Ground Floor: The Compliance Advantage
Did you know that leasing on the second floor can reduce compliance costs and allow landlords to recover land tax? Discover how strategic asset selection helps mitigate risk and boost returns.
✔️ The Crucial Role of Disclosure Statements
Missing a disclosure statement could invalidate your lease. Hear real-world horror stories and learn how to avoid them with airtight paperwork.
💸 Bank Guarantees vs Security Deposits
Allison shares why six months’ rent as security is a smart benchmark — and the pros and cons of using bank guarantees vs cash deposits. You’ll learn:
- Why bank guarantees are safer during tenant administration
- Why security deposits are faster to access
- How to structure clauses for both
📈 Incentives Done Right
Incentives like rent-free periods or capital contributions can make or break your leasing strategy. But clarity is key. The team unpacks:
- Why rental abatements can improve cash flow
- The importance of clawback clauses
- Why capital fit-outs can uplift asset value — if documented clearly
🧼 Make Good Clauses & Fit-Outs
Don’t leave things to chance. Learn why specific make-good clauses are vital to avoid disputes and ensure smooth transitions between tenancies. From repainting to re-carpeting, every finished surface counts.
🔍 Special Clauses That Set You Apart
What separates an average lease from a great one?
- Clearly defined fire safety responsibilities
- Specific rental increase dates and methods
- Inclusion of condition reports and scope of works
- Avoiding vague phrases like “workmanlike manner”
Allison breaks down the 20+ special conditions she recommends including in every lease to protect landlords and boost professional asset management.
🚗 Surprise Costs Like the Congestion Levy
Ever heard of Victoria’s congestion levy? It’s just one example of how state-specific costs can impact your bottom line — and why having experts on your team is critical.
📞 Ready to Invest Smarter?
Commercial leases are complex — but they don’t have to be risky. With the right experts, airtight clauses, and forward planning, you can set your commercial asset up for years of success.
🎧 Listen to the full episode now
📞 Book a free discovery call with InvestorKit’s commercial team to find your next opportunity — backed by strategy, research, and results.