Our Core Value of Commitment understands connections are strengthened by communication and please see our frequently asked questions for Landlords of Shopping Centres and Large Format Centres. Call Dominic on 0417 008 754 for a confidential discussion - afterhours and weekends are fine too.
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This is general information only and not an exhaustive list of requirements and matters required in law, by regulations or the like. Converge Real Estate recommends Landlords obtain their own independent legal, accounting, financial and business advice.
| Why use Converge Real Estate for leasing and Shopping Centre management and Large Format Centre management? |
| We care – we’re passionate about property and everything it entails. As your centre manager we want to make meaningful connections with people and spaces and we’re committed to being your partner on your journey to success. We understand enriching connections means acting with integrity and communicating with you. |
| How to contact Converge Real Estate? |
| Strengthening our connection is always welcomed. We can connect in person, by phone, email or by using our portal as our Core Value of Anchoring means we are present, accessible and act supportively. As your property manager we understand relationships require passion and perseverance with commitment levels to remain high on an ongoing basis. |
| Can Converge Real Estate take over centre management if my centre is currently leased? |
| Yes and we’ll be honoured to do so. We’ll make transferring centre management to us as seamless as possible by contacting your existing centre managing agent and Tenants/Retailers too. We’ll attend to collecting keys, transfer of Bank Guarantees/Security and immediately start on building enduring connections as your centre manager. |
| How are Prospective Tenants/Retailers assessed? |
| Prospective Tenants/Retailers complete an application form and establish their identity. Whilst forming connections with them we’ll assess their applications and verify supplied information. It’s so important to form meaningful relationships during the leasing and property management stages so as to gain an understanding of the proposed entity, business acumen, experience and financial security. Checks are carried out in accordance with privacy legislation. |
| Can Converge Real Estate sell my Shopping Centre or Large Format Centre? |
| Yes. We’ll be honoured to sell your centre if that’s your preference. |
| How do I receive my rent once the Tenant or Retailer has paid? |
| As authorised, once funds paid by the Tenant are cleared, we can pay from the rent items like council rates, body corporate fees, maintenance and repairs, commissions, fees and other charges. Any remaining balance will be paid into your nominated bank account. |
| What financial information do I receive? |
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As your centre manager, when monies are remitted to you we’ll issue a statement explaining important information such as the amount the Tenant paid, the relevant rental period, any monies, commissions and fees deducted, and the amount actually deposited into your account. Our industry leading accounting system Property Tree can provide additional budgeting and financial reports, tenancy schedules and other information. As your centre management strategic partner Converge Real Estate will work collaboratively with you to ensure communication is timely and information transparently shared. |
| How is rent reviewed? |
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When vacant and available for lease, we’ll assess the rent the property should be marketed at to minimise downtime and grow your income. The lease should outline when and how the rent is reviewed so understanding and complying with the lease is critical. Rents can be varied according to a fixed amount, percentage change, CPI adjustment, market rent review or other agreed method. As your professional centre manager we maximum cash flow by issuing annual rent increases and notices. |
| What happens if the rent is paid late? |
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We use the industry’s leading technology to monitor rent payments and outgoing recovery. As your property manager we’ll send invoices and stay in contact with Tenants to help avoid late payments however this a risk in owning investment properties. If the rent or outgoings are not paid on time, we’ll let you know too so you are informed. There are extensive requirements that must be complied with when issuing notices in accordance with the lease, Retail Leases Act, Property Law Act and other legislative framework so each dealing needs to be assessed on a case by case basis. Converge Real Estate recommends Landlords obtain their own independent legal advice. Effective property management involves several ways for dealing with rent arrears and overdue outgoings including applying penalty interest, seeking formal recovery by notices, ending a lease and/or drawing down on security, subject to lease and/or legislative requirements. As your property manager, Converge Real Estate’s approach in forging enduring relationships is deeply beneficial when managing conflict and encouraging transparent and meaningful dialog. As your trusted property manager non payment of rent is a serious matter which is constantly monitored. |
| Does the Retail Leases Act apply to tenancies at the Shopping Centre or Large Format Centre? |
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There’s lots of matters that need to be considered when determining if the Retail Leases Act applies to a premises. The Retail Leases Act defines a retail premises, not including any area intended for use as a residence, that under the lease relating to the premises are used, or are to be used, wholly or predominately for the sale or hire of goods by retail or the retail provision of services or the carrying on of a specified business or a specified kind of business that the Minister determines. As examples only (not an exhaustive list) common reasons why the Retail Leases Act may not apply to a premises is if the occupancy cost exceeds the amount prescribed, which as at Jan 24 is $1,000,000 excluding GST per annum or if the Tenant is a body corporate (or subsidiary) whose securities are listed on the Australian Stock Exchange. Sometimes it is straightforward to determine if the Retail Leases Act applies to a premises whereas in other cases it can very challenging to determine. Converge Real Estate recommends obtaining your own independent legal advice to determine if a premises is subject to the Retail Leases Act as every case if different and needs to be assessed on a case by case basis. |
| Why is it important to identify if the Retail Leases Act applies to a premises in a Shopping Centre or Large Format Centre? |
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The Retail Leases Act outlines specific obligations Landlords must comply with both when entering into a lease with a Tenant and throughout the duration of the term of the lease. The Retail Leases Act governs a wide variety of lease matters impacting the Landlord and Tenant and Converge Real Estate can provide pragmatic and timely leasing and property management guidance and support as needed. As limited examples only, the Retail Leases Act outlines the extent to which a Landlord can recover outgoings, how breaches are dealt with, assignment provisions, Tenant’s repairs and maintenance obligations and the timeframe for returning a Security Deposit or Bank Guarantee. Recent changes to the Retail Leases Act and introduction of the Retail Leases Amendment Act has increased Landlords’ responsibilities when issuing Disclosure Statements and further made specific requirements when leases have an option period, especially when the rent at the commencement of the option is adjusted to market rent. Converge Real Estate is experienced in retail and commercial leasing and property management and can provide timely advice based on your specific circumstances. |
| What security can be sought? |
| The level of security that can be achieved include Personal Guarantees and/or Security deposit or Bank Guarantee and is a matter subject to negotiation between the parties during the leasing stage. As the rent increases over time Landlords may be entitled to increase the amount of the Security Deposit or Bank Guarantee. Converge Real Estate will assess this entitlement ensuring Landlords’ interests are safeguarded when supportively delivering property management services. |
| What happens if a Landlord does not comply with the Retail Leases Act or Lease? |
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There are serious consequences and repercussions for Landlords that fail to comply with a lease and/or Retail Leases Act and independent legal advice should be obtained by a Landlord should this arise. As your anchoring and strategic property manager Converge Real Estate is best placed to represent you to protect your interests. Tenants can also face penalties and legal action if Tenants don’t meet their obligations. Approaching people and dealings with genuine curiosity and interest allows Converge Real Estate to be effective in delivering property management services with integrity. |
