Commercial Leasing – Who Flips the Bill for Repairs?

In Brisbane, we are lucky to have so many great options when it comes to commercial properties to lease and transform into businesses. But when it comes to the maintenance of the property, who flips the bill?

The legal obligations of a landlord and tenant regarding maintenance and repair of the premises are set out in the lease, which is often dependent on negotiations and unique circumstances.

So, understanding who the responsibility of repairs falls on can only be determined case-by-case and with reference to the lease.

While not every lease is the same, in most commercial leases the tenant is responsible for the rented premises.

For example, this may include walls, floors, fixtures and inclusions. The landlord would often also require the tenant to repair and maintain the premises during the lease term.

In many cases, any “wear and tear” on the premises will often fall under the care of by the tenant as agreed upon in the lease agreement and pursuant to legislation.

While the landlord will generally be responsible for repairing and maintaining major structural or capital aspects of the building or any other capital expenditure such as air-conditioning, walls and the landlord’s plant and equipment – these obligations are often not always written in the lease. Landlords can pass major structural or capital repair obligations onto a tenant, so each draft lease needs to be checked carefully for this before being signed.

Just about all aspects of the lease can be negotiated to ensure that both parties are happy with their responsibilities and feel they are receiving a fair deal within the agreement.

Commercial leases are not always clear regarding responsibility for major structural or capital items. While legislation may state that general repairs the responsibility of the landlord, a lease can place the responsibility for major structural or capital items onto the tenant.

Entering into a commercial lease can be a complicated and confusing process. Therefore, we always recommend seeking advice before signing any lease documents.

If you have any questions or require advice on an offer to lease or draft lease, contact our Commercial Team on 3345 4388 or at today.