expert advice: Robert Toth and Kristen Attard | Sanicki Lawyers
RETAIL LEASINGREPAIR & MAINTENANCE OBLIGATIONS - Part 2
In part one of our article, we discussed the landlord’s obligations to repair and maintain the leased premises and their equipment. We now look at obligations of the landlord for capital works, urgent repairs and outgoings that can and cannot be charged by a landlord to a retail tenant. We also look at landlord’s obligations under the Building Act 1993 and essential safety measures. 26 business franchise MAGAZINE
Capital Works Section 41 of the RLA (Vic) provides a landlord cannot pass on the cost of capital works to a retail tenant however if agreed to by a landlord and tenant, a landlord can pass on the costs of: • capital works; • installation and carrying out repairs or maintenance work in relation to essential safety measures.
Urgent repairs Section 52(4) of the RLA is often overlooked by tenants as it allows a tenant to do urgent
repairs (for which the landlord is responsible) if: (a) the repairs are necessary as they have a substantial effect on the tenant’s business; and (b) the tenant is unable to get the landlord (or the agent) to carry out the repairs despite taking reasonable steps to allow the landlord to do so. Section 52(5) of the RLA provides if the tenant carries out urgent repairs the tenant must give the landlord written notice of the repairs and the cost within 14 days after (note: NOT 14 days before!) the repairs
