Accuracy is extremely vital for rental and lease agreements. It is because the seemingly small inaccuracies in the leased area’s measurements could bring up a significantly huge impact on the long-term lease outcomes. So, the landlords, property managers and the tenants should completely and clearly understand all the terms of the lease with its accurate information. Hence, it is clear why should you take help from the licensed surveyors for the task.

What is A Lease Area Survey?
A Survey of a “to-let” area in relation to the entire property is said to be a lease survey. From the lease area survey, you can have all the information for deciding and informing the lease area’s rental value. The landlords, property managers and tenants follow the lease area survey to understand the lease arrangements. In this regard, a licensed surveyor provides the best advice for business dealings in Perth by following the ideal measurement methods for your property. Likewise, they coordinate the information documentation for fulfilling Property Council of Australia guidelines.

Before starting the lease survey process for your property, you need to clearly understand all the information as provided by the Lease Area Survey, and the way the measurements are taken.

When Is A Lease Area Survey Required?
Landlords need the Lease Area Survey for ensuring they are compliant with the Property Council of Australia rules and regulations, along with the Retail and Commercial Lease Act 1995 that the Office of the Small Business Commissioner governs.

The Real Property Act 1886 protects the lease for less than one year in South Australia. A Lease Survey is necessarily not needed in South Australia. Nevertheless, a lease taken for more than one year must be registered against the Certificate of Title by means of conducting a lease survey. As a result, you can have the necessary protection against your best interest in the property.

Why Should A Lease Survey Be Needed?
Three detailed reasons justify why should a Lease Area Survey be conducted –

1. For complying with the legal requirements as initiated by the Property Council of Australia, likely to cover high-value leases and long term leases.
2. For avoiding owner–tenancy disputes over the area and land use for the lease period. In simple words, being a tenant, you will want to clear payments for the area you have occupied. On the other hand, as the owner or as the agent, you will want to lease just a particular area and quote correctly. If you send out incorrectly quoted areas, then it will easily bring up expensive disputes and litigation.
3. For using as forward business planning related to costs and uses. Even here, the calculation has a vital role, since if there is any small miscalculation of the leased area, then it is bound to bring up significant impacts over a 10-year-period.

The Three Types of Lease Area Surveys
Generally, the three different types of Lease Area Surveys also termed as Lease Plan Surveys and Lettable Area Surveys, include –

1. Net Area Surveys applicable for Commercial Properties, like office buildings and Business Parks.
2. Gross Area Surveys needed for the Industrial Properties, like showrooms, warehouses, industrial workshops and free-standing supermarkets.
3. Gross Area Surveys for Retail Tenancies in shopping strips, shopping centres and the free-standing shops.

Guidelines on Property Council Of Australia Method Of Measurement
The measurement method of a space’s lettable area varies based on the area type being leased. As per the established Method of Measurement guidelines by the Property Council of Australia, the three defined standards being used in the commercial leases are –

• Net Lettable Area for office buildings and tenancies
• Gross Lettable Area for industrial buildings, freestanding supermarkets and industrial buildings
• Gross Lettable Area for Retail, comprising of retail tenancies at the shopping centres, stip shops and commercial buildings.

The Property Council of Australia Method of Measurement guidelines guides with a consistent approach to calculate the lettable areas across different industries or applications, starting from the corporate office buildings to the supermarkets as well as retaining spaces within the shopping centres.

The guidelines act as the best starting point. Still, a Licensed Surveyor has the needed expertise for interpreting and advising on the best guidelines’ best application for your unique needs and the best way to take up and complete your lease plan.

Taking note of landlords and tenants should be agreeing on the measurement method to be used before starting the survey is essential. It is because the factors to be included and excluded from the lettable area calculation has to be determined.

Added to it, the survey’s level of detail is determined by the survey’s purpose. For instance, when the lease agreement spans for above one year, then you will need to register the lease plan against the Certificate of Title. For registering the lease against the Certificate of Title, you should take assistance from the Licensed Surveyor for completing a Lease Area Survey and submit the Filed Plan to be approved by the Lands Titles Office.

At the time of leasing building space, like a warehouse, shopping centre, or office buildings or shop front, then you will have to consult the Licensed Surveyors for having the accurate measurements of the building area for producing a Lease Area Plan. The Licensed Surveyors use the Method Of Measurements to perform the Lease Area Surveys as has been set out by the Property Council of Australia. This measurement method aims at promoting consistency by providing a simplified approach to the floor space measurement as it is cost-effective and practical. The resulting Lease Area plan is likely to be a beneficial tool to negotiate with the prospective tenants, while in a few cases, it could be the legal requirement of the said lease agreement.