Repairs and Maintenance PDF Print

The lease will generally set out who is responsible for maintaining the premises.  The tenant is usually responsible for keeping the premises clean and in good repair, subject to "fair wear and tear", over the term of the lease. 

The Retail Leases Act 2003 now makes it clear whose responsibility it is to undertake certain repairs by prescribing that certain statutory provisions are to be included into retail premises leases. If there are provisions in the lease on repairs, the Retail Leases Act 2003 provisions will override them in so far as they are inconsistent with the provisions in the lease.

Section 52 of the Retail Leases Act 2003 provides, as a general rule, that the landlord is responsible for maintaining (in the same condition as the premises were in when the lease was entered into) the following items:
• the structure of the premises (i.e. the walls and the roof);
• the fixtures in the premises (i.e. items belonging to the landlord such as built-in shelving);
• the plant and equipment at the premises (i.e. such as the air conditioning system); and
• the appliances, fittings/fixtures that the landlord has provided under the lease relating to the services such as gas, electricity and water (ie. powerboards, water pipes, hot water system).
The exceptions to the general rule in section 52 are that the landlord is not responsible for maintaining those items if:
• the need for the repair arises out of the tenant's misuse of that item (see section 52(3)(a)); and
• the tenant is entitled or required by the lease to remove the item at the end of the lease (see section 52(3)(b)).

Note, section 52 relates to leases to which the Retail Leases Act 2003 applies.  There are identical provisions that relate to leases to which the Retail Tenancies Reform Act 1998 and the Retail Tenancies Act 1986 apply (see sections 107 and 116 of the Retail Leases Act 2003 respectively).

If you have further queries about section 52 of the Retail Leases Act 2003 contact the VSBC on (03) 9651 9316.