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.

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).

Additional Territory Context for ACT

The Australian Capital Territory (ACT) operates under a specialized legal structure due to its status as the nation's capital. The relationship between landlords and tenants is primarily governed by the Residential Tenancies Act 1997, which has undergone significant amendments in recent years to strengthen tenant protections. This includes the effective abolition of "no-cause" evictions for most lease types, ensuring that housing stability is prioritized for Canberra residents.

All rental bonds must be managed through the ACT Revenue Office, providing a central, secure system for both parties. For investors, understanding the specific maintenance standards required by the territory—including energy efficiency and safety requirements—is paramount. Landager's platform is designed to track these recurring obligations, ensuring that your property remains compliant with the latest territory-wide mandates while providing clear communication channels with your tenants. Regardless of whether you manage a single unit in Belconnen or a large portfolio in Gungahlin, the legal baseline remains consistent across the ACT.

How Landager Helps

Managing properties in the Australian Capital Territory (ACT) requires strict adherence to the Residential Tenancies Act 1997, especially regarding the mandatory 4-week bond cap and the annual limit on rent increases. Landager simplifies ACT compliance by automating bond lodgment tracking with the ACT Revenue Office, managing the 8-week notice required for rent increases, and ensuring your eviction processes follow the ACAT-mandated Notice to Remedy sequence. From tracking urgent repair requests to maintaining digital checklists that satisfy ACT habitability standards, Landager provides the tools to manage your Canberra portfolio with confidence.

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