Retail leasing FAQ19: If the landlord is providing an incentive as cash towards my fit-out, when do I get the money?

If the landlord is providing an incentive as cash towards my fit-out, when do I get the money?

• Method and timing of payment is negotiated/agreed prior to signing the lease and documented in a separate Deed of Incentive.
• In most cases, the tenant may invoice the lessor for the agreed amount once certain criteria are met which usually includes;
• Completed fit-out to agreed design and lessor’s standards
• Shop is fully stocked and ready to trade
• All required approvals and certifications have been supplied
• All lease documents have been signed and returned, Bank Guarantee paid, proof of insurances supplied etc
• Often the lessor will require specific invoices as they effectively take ownership for some agreed items they have paid for. Usually, this would include items such as mechanical services plant (air con) and other fixed large ticket items which the landlord will then claim depreciation on.
• The Deed will also stipulate payment terms once the invoice is supplied.