The Policy applies to Lease and Licence Agreements on Council owned or managed property, except for: Casual room hire; Seasonal Licence agreements that are covered by the Sporting Facility User Guide (such as summer and winter sports clubs using pavilions); Telecommunications agreements; Management Service Agreements; and those where Council is the tenant.

Having an agreement between a landlord and a tenant for the use of a building, space or land is standard practice and best looks after the interests of all parties involved, as well as the general community.

As Council has a significant property portfolio and a role as a landlord, Council requires all its tenants who occupy community space to enter into a lease or licence agreement. This is to ensure:

• Council meets its statutory obligations (under the Local Government Act and Crown Land Reserves Act);
• Consistency and transparency in leasing and licencing to tenants; and
• Certainty regarding tenant and landlord responsibilities.

Not having a lease or licence agreement in place creates additional risk for all of us - tenants, Council and the community.

The Policy applies to Residential, Commercial and Community tenants.

Community tenants are organisations or groups that provide services to the community and do not operate for the profit, personal gain or other benefit of particular people. They can vary in size, from small groups that may rely on volunteers and the receipt of grants, donations or fundraising, to larger organisations who are well funded by membership fees and programs as the principle source of income and may supplement this income with trading activities. New agreements will need to be reached with any Community tenants who have expired or no agreements.

There are a number of benefits for Community tenants, including

• Confidence for Community tenants that they have the right measures in place if something does go wrong while they are occupying the tenancy, either to a group member or to the general community.
• Clarity about maintenance responsibilities and who they should contact if something happens.
• Security of tenure, meaning that there is certainty on how long a tenant has occupation for.

Residential and Commercial tenants will be charged market rates.

Depending on the income and trading activities of each Community tenant, the proposed base rent for Community tenants is $421 per annum plus GST, to be increased annually at a rate comparable to CPI. It is proposed to phase this in.

Outgoings such as utilities will continue to be considered on a case-by-case basis, appropriate to the tenancy.

Community tenants may make a submission when entering a new lease or licence agreement for consideration of a rental reduction which will be formally decided by Council.

The Community administrative rent pricing structure component of the Policy will not apply to the groups that are covered by the Wyndham Sports Facility User Guide (such as sporting groups on seasonal licenses) or the Early Years Partnership Framework.

For Community tenants occupying Council premises that currently pay no rent (or below the proposed administrative rent of $421 per annum plus GST) a three-year phased implementation will be introduced. There will be no change in Year 1; a 50 per cent charge in Year 2 (proportioned to lease or licenced area) and 100 per cent in Year 3.

Community tenants may make a submission when entering a new lease or licence agreement for consideration of a rental reduction which will be formally decided by Council.

In early September, Council directly contacted all impacted Community Tenants who either currently pay no rent and/or have no agreement in place. These tenants were offered the opportunity to meet with officers to discuss how the Policy may affect their tenancy, as well as any feedback or concerns. This feedback has helped inform the Draft Policy.

Engagement is continuing with these stakeholders.