Victoria Commercial Maintenance Obligations: Landlord and Tenant Responsibilities
Guide to Victoria commercial property maintenance including Retail Leases Act obligations, essential safety measures, and make good requirements.
Legal Disclaimer
This content is for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. Laws change frequently — always verify current regulations and consult a licensed attorney in your jurisdiction for advice specific to your situation. Landager is a property management platform, not a law firm.
Victoria commercial property maintenance obligations are allocated differently depending on the lease type. The Retail Leases Act 2003 provides a regulated baseline for retail premises, while non-retail commercial maintenance is determined primarily by the lease agreement.
Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Always consult a licensed legal practitioner in Victoria for guidance specific to your situation. Information last verified: March 2026.
Retail Lease Maintenance Obligations
Under the Retail Leases Act 2003, landlords have specific maintenance duties:
Landlord Responsibilities
The landlord must maintain in a condition consistent with the premises at the lease commencement:
| Area | Responsibility |
|---|---|
| Building structure | Walls, floors, ceilings, roof, foundations |
| Fixtures | Landlord-provided fixtures and fittings |
| Plant and equipment | Building-wide systems and equipment |
| Service systems | Gas, electricity, water, and drainage systems and connections |
| Common areas | Shared spaces (lobbies, corridors, car parks, amenities) |
| Essential safety measures | Fire systems, emergency lighting, exit signage |
Exceptions
The landlord's maintenance obligation does not cover:
- Repairs needed due to tenant misuse or negligence
- Items the tenant is entitled to remove at the end of the lease
- Tenant fit-out and improvements
- Items that the lease specifically allocates to the tenant
Tenant Responsibilities (Retail)
- Maintain the interior of the premises in good condition
- Keep the premises clean and tidy
- Maintain tenant-installed fixtures and fit-out
- Report maintenance issues promptly to the landlord
- Obtain landlord consent for alterations or modifications
Non-Retail Commercial Maintenance
Non-retail commercial maintenance is governed entirely by the lease:
Common Allocation
| Responsibility | Gross Lease | Net Lease |
|---|---|---|
| Structure | Landlord | Landlord (usually) |
| Roof | Landlord | Varies (often landlord) |
| HVAC | Landlord | Tenant |
| Plumbing | Landlord | Varies |
| Electrical | Landlord | Tenant (within premises) |
| Interior | Tenant | Tenant |
| Common areas | Landlord | Landlord (recoverable as outgoing) |
| Car park | Landlord | Landlord (recoverable) |
| Landscaping | Landlord | Landlord (recoverable) |
Essential Safety Measures (ESMs)
Under the Building Act 1993, all commercial properties must maintain essential safety measures:
Landlord Obligations
- Ensure all ESMs are maintained and operational
- Obtain annual Essential Safety Measures report from a qualified assessor
- Display the current Annual Essential Safety Measures Report at the building entry
- Keep records of all ESM maintenance for at least 10 years
Common ESMs
| System | Requirement |
|---|---|
| Fire services | Sprinklers, hydrants, hose reels, extinguishers |
| Smoke detection | Smoke alarms and detection systems |
| Emergency lighting | Exit signs and emergency lights |
| Fire doors | Self-closing and fire-rated doors |
| Mechanical ventilation | Fans, air handling, smoke exhaust |
| Fire safety systems | Fire indicator panels, alerting systems |
Outgoings and Maintenance Costs
For retail premises, maintenance costs passed to tenants as outgoings must be transparent:
- Annual estimate provided at least 1 month before each accounting period
- Annual statement within 3 months of the accounting period end
- Land tax cannot be charged to retail tenants
- Capital expenditure may be recoverable depending on lease terms
Make Good Obligations
At lease end, tenants typically have obligations to restore the premises:
Common Requirements
- Remove all tenant fit-out and improvements
- Repair any damage beyond fair wear and tear
- Return the premises to the condition specified in the lease
- Remove all signage and patch any holes
Best Practice
- Define make good requirements clearly in the lease
- Conduct a pre-termination inspection to identify required work
- Allow adequate time for make good before the lease expiry date
- Document the condition at lease start and end
Urgent Repairs — Commercial
Unlike residential tenancies, commercial leases generally do not have statutory urgent repair provisions. The lease should address:
- Emergency repair procedures
- After-hours contact arrangements
- Each party's obligations for emergency situations
- Insurance requirements for building damage
Best Practices for Commercial Landlords
- Define maintenance obligations clearly — Avoid ambiguity in the lease
- Maintain ESM compliance — Annual reports are legally required
- Schedule preventive maintenance — Regular inspections prevent costly emergency repairs
- Keep detailed records — All maintenance, repairs, and inspections
- Budget for capital works — Plan for major expenditure on building systems
- Communicate with tenants — Coordinate access for maintenance and inspections
- Review outgoings annually — Ensure accurate pass-through billing
How Landager Helps
Landager's commercial property tools help landlords track maintenance obligations, manage ESM compliance, schedule inspections, and reconcile outgoings — providing complete visibility into your property maintenance operations.
Sources & Official References
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