Sponsor Insight - Norman Waterhouse - Maintenance Obligations under Council Leases

25 Feb 2015 11:52 AM | Anonymous


The extent of a tenant's responsibility to maintain their premises under a lease is often an area of concern for both landlords and tenants, and is not always easy to determine. 

Councils are typically responsible for an array of properties either owned by the council, or under its care and control.  It is important for councils to ensure their lease agreements are regularly reviewed, and that those properties are regularly inspected to ensure their tenants are not only complying with their maintenance, repair and replacement obligations, but also, to ensure that all maintenance works have been properly completed in accordance with all relevant laws and standards.

Where a tenant neglects its maintenance obligations, then this raises safety concerns and financial risks for both the tenant and the council.  Where a tenant has failed to comply with its maintenance obligations, councils may inadvertently incur costs from undertaking the maintenance obligations in default of the tenant.  These costs may or may not be ultimately recovered from a tenant and may be contingent on any financial security provided under the lease, and the financial viability of the tenant. 

If you would like advice in relation to risk minimisation under your lease agreements, and how the maintenance obligations of both the landlord and the tenant can be structured for improved understanding and transparency, please contact Janine Carroll on 08 8210 1265 or jcarroll@normans.com.au or Jessica McNamara on 08 8210 1215 or jmcnamara@normans.com.au.


Mailing Address: 148 Frome Street ADELAIDE SA 5000   Phone: 08 8224 2080   Email: admin@lgprofessionalssa.org.au


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