potential risks of land use and how to protect it

[Lara777]

hello, i have a large block of land i am not using fully and would like to share it out to others for some extra income.
i propose it to be used as storage (not a rental or lease) so for example long term storage of machinery or truck, project, etc.

can i please get some input on the pros and cons of doing this and how i could add some protection for myself.
some points:
i dont want to be locked into any official rentals or leases. as i may need to area back
which laws would apply for unpaid storage fee, and items left being (as i read this can very depending on the arrangement)
if the user does a wrong? etc.
any difference to doing this private or commercial

thanks
lara

 

[Rod]

Hi @Lara777

Helps knowing the State in which the property is located.

You protect yourself through a written agreement. Shire/council zoning restrictions may also be an issue for you. Have you checked out if what you are proposing is a permissible use of the land? No point going any further if the local government will not agree/allow such use.

Difference between doing it commercially and privately is tax and who foots the bill if an issue has to go to court.

We can assist you draw up an agreement.

 

[Lara777]

hey, thanks for the reply
Victoria
the land is commercial, industrial 1

what type of written agreement. \ what would it cover and not cover?

also wondering what the situation would be with out a written agreement.
thanks

 

[Rod]

To do what you want, a licence agreement is the best method.

We'd put in special conditions covering items such as permitted use (ie storage only, not repairs etc), number and size of vehicles, allocated space, and remedial actions/costs (to cover things like fuel/oil/lubrication spills.

No written agreement puts you at some risk of a delinquent owner, plus opens you to a claim of a lease.

Protect yourself with a written document.

 

[Lara777]

thanks for the info,
i would also be sharing\caretaking a separate part of the land. a licence agreement sounds good, i would like to avoid claim of a lease
at this point i invoice as "storage only" with a few terms and causes, but there may be some things i am unaware of.

thanks