ACT Commercial Maintenance: Make Good Clauses and Structural Repairs

Unlike residential tenancies where the landlord guarantees habitability, commercial property maintenance in the Australian Capital Territory (ACT) is defined almost entirely by the negotiations captured in the lease agreement. The goal is to clearly divide responsibilities so both parties understand their financial exposure over the lease term.

Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Always consult an ACT-qualified commercial solicitor or a building surveyor. Information last verified: March 2026.

Structural vs. Non-Structural Repairs

The most common division of maintenance in an ACT commercial lease is between structural and non-structural elements.

1. The Landlord's Responsibility: The landlord is typically responsible for repairing the "fabric" of the building. This includes the roof, load-bearing walls, foundations, and exterior cladding.
2. The Tenant's Responsibility: The tenant is generally responsible for all non-structural repairs within their defined premises. This includes internal walls, flooring, lighting, plumbing fixtures, and maintaining the HVAC system serving their space.

The "Keep in Repair" Clause

Commercial tenants are usually required to "keep" the premises in a good state of repair. It is crucial for tenants to establish exactly what condition the property was in on day one.

• Condition Reports: Best practice in the ACT is to attach a photographic Condition Report (or Schedule of Condition) to the lease. The lease is then drafted to ensure the tenant only has to maintain the property to the standard shown in that report, preventing them from being liable for pre-existing damage.

Multi-Let Buildings and Service Charges

If a property in the ACT is a multi-tenant office building or retail center, the landlord is responsible for maintaining the interior common areas (lobbies, shared bathrooms, lifts).

However, the cost of this maintenance is not borne by the landlord. The landlord carries out the repairs and cleaning, and recovers the costs from all the tenants via a Service Charge (often referred to as 'Outgoings').

• The lease will dictate the tenant's proportion of the service charge, usually based on their percentage of the total lettable area.

The "Make Good" Obligation (End of Lease)

The most contentious maintenance issue in commercial real estate occurs when the lease ends. Most ACT commercial leases contain a rigorous Make Good clause.

When handing the keys back, the tenant must "make good" the premises. Depending on the lease wording, this can require the tenant to:

• Remove all their branding, furniture, and inventory.
• Remove any partition walls or custom fit-outs they installed.
• Repaint the walls.
• Replace carpet or flooring to match the condition it was in at the start of the lease.

If the tenant fails to make good, the landlord will hire contractors to do the work and draw the cost directly from the tenant's Bank Guarantee (Security Deposit).

How Landager Helps

Landager centralizes your commercial maintenance records. Store critical baseline Condition Reports, track tenant compliance with routine HVAC servicing obligations, and manage the complex accounting and apportionment of multi-let Service Charges across your ACT commercial portfolio.

Back to ACT Commercial Lease Laws Overview.