Retail Leases: Repairs & Maintenance Repairs and Maintenance S.52 - Retail Leases Act 2003 Landlord is responsible for maintaining: Structure, fixtures.

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Presentation transcript:

Retail Leases: Repairs & Maintenance

Repairs and Maintenance S.52 - Retail Leases Act 2003 Landlord is responsible for maintaining: Structure, fixtures Plant, equipment Appliances, fittings & fixtures relating to gas, electricity, water, drainage or other services in a condition consistent with the condition of the premises when the lease was entered into.

Repairs and Maintenance Landlord is not responsible for maintenance: - due to tenant’s misuse; or - If the tenant is entitled to remove the item at the end of the lease.

Repairs and Maintenance Urgent Repairs Tenant can arrange for urgent repairs if the repairs are necessary to fix a fault or damage that is having a substantial effect on or to the tenant’s business; and The tenant is unable to get the landlord or agent to carry out the repairs, despite having taken reasonable steps to get the landlord or agent to carry out the repairs.

Repairs and Maintenance Urgent Repairs 2 Tenant must give landlord written notice of urgent repairs that have been carried out, and the cost, within 14 days after the repairs The landlord is liable to reimburse the tenant for the reasonable cost of the repairs and may not recover any part of that cost as an outgoing.

Repairs and Maintenance S.54 – landlord is liable to pay reasonable compensation for a failure to rectify any breakdown of plant & equipment that is not under the tenant’s care or maintenance; or Any defect in the premises or building, other than a defect due to a condition that would have been reasonably apparent to the tenant when entering or renewing the lease – National Hospitality Group Pty Ltd v Regal Hotels Pty Ltd [2013] VCAT 413 S.57 RLA - damage and rent abatement

Repairs and Maintenance S.57 RLA – tenant is not liable to pay rent or outgoings or other charges during which the premises cannot be used due to damage If premises can be used but damaged, the tenant’s liability for rent and outgoings is reduced to extent to which use of the premises is decreased due to the damage

Don’t let a commercial dispute drag your business down Contact the VSBC for  Information  Assistance  Guidance  Dispute resolution vsbc.vic.gov.au 13 VSBC ( )