Outgoings Under Leases

s common for leases of commercial and retail premises to require the tenant to pay, in addition to rent, both the tenant's own outgoings as well as the outgoings of the landlord. 

This is a common source of confusion and disputes between the parties of leases. 

There's no standard definition of outgoings, so you need to look at the terms of agreement to determine what outgoings are payable. 

In most cases, landlord outgoings include government rates and charges, cleaning and maintenance costs and common property management costs. 

When a lease is regulated under the retail leases act, a tenant is not required to pay some outgoings, such as land tax and certain costs of a capital nature. 

It's wise to consult a lawyer to make sure you understand your rights and obligations as either a tenant or landlord. 

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More Information

It is common for leases of commercial and retail premises to require the tenant to pay, in addition to rent, both the tenant’s own outgoings, such as electricity and telephone, as well as the outgoings of the landlord in respect of the premises.

As a landlord or a tenant, it is important that you understand precisely what your obligations are in that regard, as it is a common source of confusion and disputes between parties to leases.

There is no standard definition of the term outgoings.  You need to look carefully at the provisions of the relevant lease document to determine what outgoings are payable.

A landlord’s outgoings can include a broad range of expenses including government rates and charges, cleaning and maintenance costs and, when there is common property, a range of other costs associated with the management and operation of that common property.

When a lease is regulated by the Qld Retail Shop Leases Act, there are some outgoings which the tenant cannot be required to pay, including land tax and certain costs of a capital nature.

As a landlord or a tenant it is wise to consult a lawyer to ensure that you understand your rights and obligations in respect of the payment of outgoings, and that any lease you sign clearly reflects your requirements in that regard.

This information is of a general nature only and is not to be relied on as legal advice. You need to seek your own legal advice.

If you have any queries about this or any other aspect of property law or conveyancing then please contact us on 07 5443 9988 or[email protected].

Argon Law is a Sunshine Coast law firm based in Maroochydore.  We are commercial lawyers and property lawyers and are eager to assist you in any way we can.

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