I have been approached to lease out my property to GROH ( department of corrective services). 3 years with option to renew for $400. Is there anything I need to consider before accepting? Is there a link I can look through? Should I update my insurance policy to protect for any damag
My name is XXXXX XXXXX X am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question.
The property is a residential strata unit - 2 bed/2 bath. They are seeking some form of residential lease I understand and most likely the tenant will be a police officer or another employee of the Corrective Services department.
Having never had any dealings with the government, just want to make sure I get my i's dotted before entering any agreements with them.
My initial request, I tried to attach a zip folder containing the GROH request ( not the tenancy agreement), its just their letter requesting we consider their rental offer.
Oh, to confirm - $400 is rental of unit per week.
Thank you. Meg.
At this stage ( they are just making enquiries) I understand the department signs the lease for 3 years with 1 year option to renew and they put tenants in.
Do let me know if there's anything else I need to look into other than a residential lease.
Thank you for that. I think I've got enough to keep me going for a bit. I will ask my rental agent for further details and seek clarifications.
Can I just ask you one final point. The property is mortgaged to the National bank ( that is I have a residential investment home loan) on it for negative gearing.
If this is a commercial lease I have to enter into - does that cause any issues with the bank? Do they view it differently from a residential lease? I am in 2014 seeking further finance from the bank for further investment lending ( another home loan) so will be using this property to support that lending as well as relying on this lease for my rental income stream? Does it being a commercial lease ( possibly) cause the bank to assess things differently?
Brilliant. Thank you very much Leon.
Please finalise this query and put through the charge of $99 if not already collected.
Thank you again and have a lovely week ahead.
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