Commercial Landlord Duties in Victoria: Lease Terms and Maintenance

If you run a small business in Victoria, your lease is more than just a monthly cost - it’s the legal framework that shapes how you operate day-to-day. And if you’re a property manager or commercial landlord, getting your responsibilities right can be the difference between a smooth tenancy and a long, expensive dispute.

In practice, commercial landlord responsibilities aren’t always as simple as “landlord fixes everything” or “tenant pays for everything”. Your responsibilities will depend on the type of lease (especially whether it’s a retail lease), what the lease says about repairs and outgoings, and the legal rules that sit around the lease.

This guide breaks down commercial landlord responsibilities in Victoria in a clear, practical way - from repairs and safety through to disclosure, outgoings, and what to do when something goes wrong.

Why Commercial Landlord Responsibilities In Victoria Matter For Your Business

As a tenant, understanding your landlord’s responsibilities helps you:

• avoid paying for things you shouldn’t be paying for
• act quickly when the premises become unsafe or unusable
• document issues properly so you can enforce your rights if needed
• reduce downtime (and lost revenue) during repairs

As a landlord or property manager, being across your responsibilities helps you:

• reduce disputes and vacancies by responding to issues early
• avoid penalties (particularly for retail leases)
• protect the building’s value and insurability
• keep solid records that make enforcement and recovery of costs easier

The key is this: most commercial lease disputes happen because expectations weren’t aligned upfront, or because a “small” repair issue turns into a business interruption problem.

Is It A Retail Lease Or A Commercial Lease (And Why It Changes The Rules)?

In Victoria, many “commercial” shopfront leases are actually governed by the Retail Leases Act 2003 (Vic). If your premises are used for a retail business (or located in a retail shopping centre), there’s a good chance your lease is a retail lease even if the document calls it a “commercial lease”.

This matters because retail leasing rules often impose extra obligations on landlords - especially around:

• disclosure statements
• outgoings
• repair and maintenance expectations
• how rent reviews are carried out
• minimum lease term rules (and how any shorter term must be handled)

For example, retail leases in Victoria generally have minimum term requirements (often referred to as a 5-year minimum term) unless the tenant follows the required process to waive that protection. However, retail leases don’t automatically grant a right of renewal - any option to renew depends on what’s written into the lease (and how the parties manage the renewal process).

If you’re unsure what category you fall into, it’s worth getting the lease reviewed early. A lease review can also flag tricky clauses like broad “make good” obligations, unusual outgoings, or strict notice requirements for repairs. This is also where having the right Commercial Lease Review can save you a lot of time and cost down the track.

What Are The Key Commercial Landlord Responsibilities In Victoria?

There isn’t one single checklist that applies to every property, because leases can allocate responsibility differently. But there are a few responsibilities that consistently come up in Victorian leasing, and they’re the areas most likely to impact your business operations.

Providing And Maintaining The Premises (Base Building vs Tenant’s Fitout)

A common dividing line is:

• Landlord: base building and structural elements (for example, the roof, external walls, major plumbing lines, structural slab).
• Tenant: the fitout, internal fixtures, and anything installed specifically for the tenant’s use (for example, counters, partitioning, internal lighting, customer seating).

That said, the lease is what usually decides the boundary. Some leases shift more maintenance responsibility to the tenant than you might expect - including responsibility for air conditioning units, grease traps, fire services maintenance, or even certain plumbing issues.

If you’re a business owner, don’t assume responsibility based on “what seems fair”. Check the lease clauses on repairs, maintenance, and services, and keep a paper trail whenever you notify the landlord of an issue.

Repairs And Maintenance (Including Response Times)

Most leases require the landlord to keep parts of the premises in good repair, particularly where issues affect:

• structural integrity
• weatherproofing (roof leaks are a classic example)
• essential services that the landlord controls
• common areas (for multi-tenant buildings)

However, leases often include:

• procedures for how tenants must report repairs (email, portal, written notice)
• limits on tenant rights to arrange repairs directly
• requirements for the landlord to act within a “reasonable time” (which can be hotly disputed if your business is losing money each day)

If a repair is urgent (for example, a burst pipe, power safety issue, or serious roof leak), some leases allow the tenant to arrange urgent works and seek reimbursement - but only in specific circumstances and only if the tenant follows the required process (such as giving the right notice, using approved contractors, and keeping proper invoices). If the lease doesn’t allow it (or the process isn’t followed), cost recovery can become disputed.

Quiet Enjoyment And Access

Most leases include a promise (expressly or implied) that you can operate without unreasonable interference - often described as the right to “quiet enjoyment”. In a practical sense, this links to landlord responsibilities such as:

• not disrupting your operations without good reason
• giving proper notice before entering (except in emergencies)
• coordinating building works so they don’t unnecessarily impact trading

For example, if a landlord schedules noisy works during peak trading hours without notice, that may become a lease issue even if the landlord has the right to do works. The details are usually in the lease’s access and works clauses.

Insurance Responsibilities (And Who Pays)

Commercial leases usually involve multiple layers of insurance, typically including:

• building insurance (usually arranged by the landlord)
• public liability insurance (often required for both parties - tenant for their business operations, landlord for the building/common areas)
• contents and stock insurance (usually the tenant)
• business interruption insurance (usually the tenant)

Even if the landlord arranges building insurance, the lease may require the tenant to reimburse that cost as an outgoing. If you’re a tenant, it’s worth checking whether you’re being charged for insurance that isn’t permitted under your lease type (particularly under retail leasing rules), and whether you’re receiving the evidence you’re entitled to.

If you’re unsure how these cost allocations work, they’re often dealt with alongside “outgoings” and should be checked as part of your lease documents and disclosure materials.

Outgoings, Repairs Bills, And Who Actually Pays?

One of the most searched (and most disputed) issues in Victoria is outgoings under a commercial lease.

“Outgoings” are the property-related costs that the tenant may be required to pay in addition to rent. Common examples include:

• council rates
• water rates (sometimes only usage, depending on metering)
• owners corporation fees (if applicable)
• building insurance
• land tax (whether it can be recovered depends on lease type and the wording, and retail lease rules can restrict this)
• repairs and maintenance to common areas and shared services

Note: Sprintlaw can help with the legal interpretation of your lease and applicable leasing laws, but we don’t provide tax or financial advice. For land tax, GST, and accounting treatment of outgoings, you should also speak with your accountant or tax adviser.

What Landlords Usually Must Do With Outgoings

In a well-run leasing arrangement, you should expect the landlord/property manager to:

• clearly identify outgoings in the lease (or disclosure documents where required)
• provide estimates (and later actuals) where applicable
• avoid charging outgoings that aren’t permitted under applicable rules
• keep records to justify outgoings charged to tenants

If you’re a tenant and the outgoing charges don’t match what you agreed to, raise it early and in writing. “We’ve always charged this” isn’t a substitute for what the lease actually says.

Repairs: Capital Works vs Maintenance

Another frequent conflict is whether a cost is:

• maintenance (keeping something working / in reasonable condition), or
• capital works (replacing/upgrading something because it’s reached end of life or to improve the asset)

Some leases try to pass on broader categories of building costs to tenants, but whether that’s enforceable depends on the lease type and wording (and, for retail leases, the Retail Leases Act). For tenants, this matters because you may be happy to contribute to routine servicing, but not to funding a major upgrade that improves the landlord’s asset.

Safety, Essential Services, And Compliance: What You Can Expect From A Landlord

Running a business from premises that aren’t safe isn’t just inconvenient - it can create serious legal and financial exposure.

While occupational health and safety obligations often sit primarily with the business operator (because you control the workplace), landlords and property managers commonly have responsibilities tied to:

• the condition of the building and common areas
• building compliance and essential safety measures (depending on the building type and what the landlord controls)
• managing and maintaining essential services where the landlord retains control

Common Areas And Shared Facilities

If you lease in a multi-tenant building (for example, offices, arcades, industrial estates), landlords typically remain responsible for:

• lighting and cleanliness in common areas
• lifts (where applicable)
• car parks and accessways
• shared bathrooms and amenities (unless otherwise allocated)

If a customer or staff member is injured in a common area due to a maintenance issue, the question of responsibility can become very serious very quickly. This is one reason clear allocation of maintenance and insurance is so important.

Security And Surveillance (If Used)

Many commercial premises now have CCTV or other security measures. If you’re a landlord or property manager installing surveillance, you also need to think about privacy and surveillance laws, and what notices, policies, or signage may be appropriate in the circumstances (this can depend on where cameras are located, what they record, and who operates the system).

If this is relevant to your premises, it’s worth getting across the basics of CCTV laws in Australia, especially if you’re managing multiple tenancies and dealing with footage requests or complaints.

For tenants, if the landlord monitors common areas, you should understand what is recorded, how long footage is kept, and whether you can access footage if there’s an incident affecting your business.

Practical Steps For Tenants: How To Enforce Landlord Responsibilities Without Burning The Relationship

Most businesses don’t want a hostile landlord relationship. You want repairs done, costs clarified, and operations running smoothly - without turning every issue into a dispute.

Here are practical steps that usually help:

1) Put Repair Requests In Writing (And Keep It Simple)

Phone calls are fine for urgency, but follow up in writing. Include:

• the issue
• when it started
• how it affects your operations (for example, safety risk, water ingress, loss of trade)
• photos if relevant

This isn’t about “being difficult”. It’s about creating a clear timeline if things escalate.

2) Check The Lease Notice Clause

Many leases require notices to be served in a particular way (email to a nominated address, postal service, portal upload). If you don’t comply with the notice clause, the landlord may argue they weren’t properly notified.

If you’re not sure what the lease requires, this is another reason a lease review upfront is valuable - it helps you understand your practical “how to” steps, not just your rights in theory.

3) Be Careful About Organising Repairs Yourself

Even if something feels urgent, organising repairs without following the lease process can lead to disputes about cost recovery.

If you’re considering arranging works yourself, it can help to get quick advice first - particularly if the costs are significant, or if you think you’ll later need to pursue rent relief or compensation for business interruption (if available).

4) Consider The Bigger Picture: Rent Relief, Abatement, Or Termination Rights

In some cases, the issue isn’t just “fix the leak”. If the premises are unusable (or significantly affected) for a period, the lease might include options around:

• rent abatement (a temporary reduction, if the lease provides for it or the circumstances trigger a relevant clause)
• repair obligations tied to timeframes
• termination rights (uncommon, and typically only where the lease gives a clear right or the law supports it in the specific circumstances)

These options are highly lease-specific (and sometimes fact-specific), so you generally need to look at the exact wording before you take a formal position.

Key Takeaways

• Commercial landlord responsibilities in Victoria depend heavily on whether your lease is a retail lease and on the specific repair/outgoings clauses in your lease.
• Landlords are commonly responsible for the base building and structural elements, while tenants often maintain their fitout - but the lease can shift these boundaries.
• Outgoings are a major source of disputes, so you should confirm what can be charged, how it’s calculated, and what records should be provided.
• Safety, essential services, and common area maintenance are critical practical issues for both landlords and tenants, especially in multi-tenant buildings.
• Tenants should report issues in writing and follow the lease notice process before arranging repairs themselves.
• Getting the lease right upfront (and understanding it before signing) is one of the best ways to prevent expensive disputes later.

If you’d like help reviewing a lease or clarifying commercial landlord responsibilities for your Victorian premises, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.