Understanding Repairs and Maintenance Responsibilities in Queensland Commercial Leases

Repairs and Maintenance in Queensland Commercial Leases: Who Is Responsible?

Repairs and maintenance issues are one of the most common causes of commercial lease disputes in Queensland. A leaking roof, broken air conditioning system, damaged flooring, faulty wiring or neglected common area can quickly become a serious business problem if the lease does not clearly say who must fix it, who must pay for it, and how quickly it must be dealt with.

For landlords, unclear repair obligations can lead to repeated complaints, unpaid rent, insurance disputes and potential claims from tenants. For tenants, poor maintenance clauses can mean unexpected repair bills, trading disruption, damaged stock, unsafe premises or difficulty exiting the lease at the end of the term.

This guide explains the key repair and maintenance issues that commonly arise in Queensland commercial leases, including the difference between landlord and tenant obligations, structural repairs, air conditioning, leaking roofs, fit-out items, utilities, retail shop leases and dispute prevention.

If you are reviewing, negotiating or disputing a lease, Ensure Legal can assist with commercial lease review, lease drafting and commercial lease dispute advice.

Why Repairs and Maintenance Clauses Matter

A commercial lease is not just about rent, term and permitted use. The repair and maintenance clauses can have a direct financial impact on both parties throughout the lease.

These clauses usually deal with:

• who maintains the premises during the lease;
• who repairs damage caused by the tenant, staff, customers or contractors;
• who is responsible for structural repairs;
• who maintains air conditioning, plumbing, electrical systems and fire safety equipment;
• who pays for common area maintenance;
• what happens if the premises become unusable;
• whether rent abatement or compensation may apply;
• what condition the tenant must return the premises in at the end of the lease.

The problem is that many leases use broad wording such as “keep the premises in good repair” or “maintain the premises at the tenant’s cost” without clearly separating minor maintenance, capital works, structural defects and fair wear and tear. This is where disputes often begin.

Key point

Before signing a commercial lease, both parties should identify the building condition, existing defects, plant and equipment, air conditioning systems, shopfront, flooring, services infrastructure and make-good obligations. A repair clause that looks simple can become expensive if it is not properly reviewed.

Quick Guide: Landlord vs Tenant Responsibilities

This table is a general guide only. The actual answer depends on the lease wording, the type of lease, the condition of the premises at the start of the lease, the cause of the damage and any applicable legislation.

Landlord Responsibilities in a Queensland Commercial Lease

Landlords are usually responsible for maintaining the broader building structure and major building systems, unless the lease validly shifts certain obligations to the tenant. These responsibilities may include:

• structural components of the building;
• foundations and major wall defects;
• roof structure and major water ingress issues;
• common areas such as car parks, lifts, corridors and shared facilities;
• major building services that are not part of the tenant’s own fit-out;
• capital repairs or replacements that go beyond routine maintenance.

For retail shop leases and certain small business leasing disputes, repair issues may also interact with the Retail Shop Leases Act 1994 (Qld), compensation rights, disclosure obligations and dispute resolution processes.

Landlords should avoid relying on vague repair clauses. A well-drafted lease should clearly identify what the tenant must maintain, what remains the landlord’s responsibility, how urgent repairs are handled, whether costs are recoverable as outgoings, and what evidence is needed before either party claims breach.

Tenant Responsibilities in a Queensland Commercial Lease

Tenants are usually responsible for keeping the premises clean, tidy, safe and in good condition during the lease. Tenant obligations commonly include:

• repairing damage caused by the tenant, employees, contractors, customers or invitees;
• maintaining internal finishes such as flooring, carpets, glass, doors and shopfronts;
• maintaining the tenant’s own equipment, trade fixtures and fit-out;
• changing light bulbs, fixing minor items and arranging routine servicing where required;
• maintaining grease traps, automatic doors or air conditioning if the lease places that duty on the tenant;
• notifying the landlord promptly when a major repair issue arises;
• returning the premises in the required condition at the end of the lease.

The tenant should not assume that every building issue is the landlord’s problem. Equally, the landlord should not assume that every repair cost can be passed to the tenant. The lease must be read carefully, especially where it refers to maintenance, repair, replacement, capital expenditure, outgoings, fair wear and tear, insurance and make-good obligations.

Tenants should obtain legal advice before signing, especially if the lease requires the tenant to accept the premises “as is”, maintain expensive equipment, pay for structural items, or carry out broad make-good works at the end of the lease. See our guide to commercial lease review in Brisbane.

Structural Repairs vs General Maintenance

Many disputes arise because the parties disagree about whether an issue is structural, mechanical, cosmetic or operational.

For example:

• a cracked tile may be minor maintenance;
• a cracked concrete slab may be structural;
• a blocked sink may be tenant maintenance;
• a failed underground pipe may be a landlord issue;
• a dirty air conditioning filter may be tenant servicing;
• a failed compressor may be a major repair or replacement issue.

The classification matters because it affects who must pay. It may also affect whether the cost can be recovered as an outgoing, whether the landlord has breached the lease, whether the tenant has failed to maintain the premises, and whether rent abatement or compensation is available.

Air Conditioning Repairs and Servicing

Air conditioning is one of the most common pressure points in commercial and retail leases. A tenant may rely on the air conditioning system to operate a restaurant, medical clinic, beauty salon, office, retail store or showroom. If the system fails, trading can be affected immediately.

A lease should clearly answer:

• Was the air conditioning system working properly when the tenant took possession?
• Who must arrange regular servicing?
• Who pays for filters, cleaning and routine maintenance?
• Who pays for major repairs?
• Who pays if the whole system needs replacement?
• Is the air conditioning system exclusive to the premises or part of a shared building system?
• What evidence is required before a party can claim the other party is responsible?

For landlords, the safest drafting approach is to distinguish routine servicing from major capital replacement. For tenants, the key risk is agreeing to maintain or replace an old system without first checking its age, condition, service history and capacity.

Leaking Roofs, Water Damage and Business Interruption

A leaking roof can create several overlapping issues: repair responsibility, rent relief, damaged stock, mould, safety risks, business interruption, insurance claims and breach notices.

If a leak occurs, the tenant should usually:

• notify the landlord or property manager in writing immediately;
• take dated photos and videos of the leak and affected areas;
• keep records of damaged stock, equipment and fit-out;
• obtain repair reports or expert evidence where necessary;
• check whether insurance applies;
• avoid withholding rent without legal advice;
• seek advice if the premises are unsafe or unusable.

The landlord should respond promptly, investigate the cause and avoid allowing the issue to escalate. If the premises become partly or wholly unusable, the parties may need advice on rent abatement, compensation, urgent repairs, mediation or court proceedings.

The Queensland Small Business Commissioner provides general guidance on repairs and maintenance issues, but each lease must still be assessed on its own wording and facts.

Electrical Safety, Plumbing and Utilities

Electrical, plumbing and utility issues should be treated carefully because they may affect workplace safety, compliance and business continuity.

A lease may place some responsibility on the tenant for internal service infrastructure such as wall plugs, taps, pipes, wiring, fixtures and fittings within the premises. However, broader building systems, shared infrastructure and structural service failures may remain landlord issues depending on the lease and the cause of the problem.

For higher-risk premises such as restaurants, cafes, childcare centres, medical uses, gyms, workshops and beauty clinics, the lease should be reviewed together with the permitted use, fit-out plans, council requirements, fire safety obligations and insurance requirements.

Grease Traps, Trade Waste and Special Use Premises

Food and hospitality tenants should pay particular attention to grease traps, trade waste, exhaust systems, fire suppression equipment, floor waste, plumbing capacity and council approvals.

A lease may require the tenant to keep grease traps and associated systems in good working order. However, if the issue relates to structural maintenance, capital expenditure or common property, the responsibility may be more complex.

Before signing a lease for a restaurant, cafe, bakery, takeaway shop or food production premises, tenants should check:

• whether the premises are approved for the intended use;
• whether the grease trap is inside the leased area or common property;
• whether existing services are sufficient for the business;
• whether any upgrades are required before trading;
• who pays for installation, maintenance and replacement;
• whether the lease allows recovery of these costs as outgoings.

This is where legal review should be coordinated with practical due diligence. A cheap lease can become expensive if the premises are not actually ready for the proposed business.

Retail Shop Leases: Extra Care Required

Retail shop leases in Queensland may be subject to the Retail Shop Leases Act 1994 (Qld). This can affect disclosure, compensation, outgoings, dispute resolution and certain landlord charges.

A tenant should not assume that a lease is “just a normal commercial lease” because the premises are in a shopping centre, shopping strip or mixed-use building. The legal classification matters.

If the lease is a retail shop lease, repair and maintenance issues may need to be considered together with:

• the lessor disclosure statement;
• outgoings estimates and audited statements;
• centre maintenance and common area costs;
• compensation rights for disturbance or disruption;
• mediation through the Queensland Small Business Commissioner;
• QCAT or court pathways depending on the dispute.

For more information, see our Retail Shop Lease Lawyer Queensland service page.

Make Good Obligations at the End of the Lease

Repairs and maintenance should not be viewed only during the lease term. They also affect the tenant’s exit position.

At the end of the lease, the tenant may need to:

• remove fit-out works;
• repair damage caused by removal works;
• reinstate walls, floors, ceilings or services;
• clean the premises;
• return keys, access devices and manuals;
• settle outstanding maintenance or repair issues.

A poorly drafted make-good clause can create major uncertainty. Some clauses require the tenant to return the premises to base building condition. Others only require repair of damage caused by the tenant. Some leases attach a condition report, plan or schedule of landlord works; others do not.

If a lease is approaching expiry, both parties should review the make-good clause early. See our page on commercial lease make-good obligations in Queensland.

What to Check Before Signing a Lease

Before signing a Queensland commercial lease, landlords and tenants should check the following repair and maintenance issues:

• Is there a condition report at the start of the lease?
• Are existing defects listed clearly?
• Who is responsible for structural repairs?
• Who maintains air conditioning, lifts, plumbing and electrical systems?
• Who pays for routine servicing?
• Who pays for capital replacement?
• Are common area costs recoverable as outgoings?
• Does the lease deal with urgent repairs?
• Does the tenant need landlord consent before arranging repairs?
• Does the lease allow rent abatement if the premises are unusable?
• Does insurance cover stock, equipment, fit-out and business interruption?
• What are the make-good obligations at the end of the lease?

These issues should be reviewed before the tenant takes possession, pays rent, starts fit-out or signs the lease. Once the business is operating, the tenant’s negotiating position may be weaker.

What to Do If a Repair Dispute Arises

If a repair or maintenance dispute arises, both parties should avoid emotional or informal escalation. The better approach is to create a clear written record and assess the lease carefully.

Practical steps include:

1. Read the repair, maintenance, outgoings, insurance, default and make-good clauses.
2. Identify whether the issue is structural, mechanical, cosmetic, operational or caused by tenant damage.
3. Take photos, videos and written notes.
4. Obtain contractor reports if the cause is disputed.
5. Notify the other party in writing.
6. Keep records of all emails, invoices, reports and responses.
7. Consider whether a formal breach notice is appropriate.
8. Seek legal advice before withholding rent, terminating the lease or arranging major works.

If the issue has already escalated, our commercial lease dispute lawyers in Brisbane can help you assess the lease, prepare correspondence, respond to allegations, negotiate a resolution or consider formal dispute pathways.

Should a Tenant Withhold Rent Because Repairs Are Not Done?

Tenants should be very careful before withholding rent. Even if the landlord has failed to repair something, withholding rent without following the lease and legal process may put the tenant in breach. This can lead to default notices, lockout attempts, termination action or damages claims.

In some cases, a tenant may have rights to rent abatement, compensation or urgent relief. However, those rights should be assessed carefully before action is taken.

If the landlord has failed to comply with repair obligations, the tenant should seek advice on whether to issue a formal notice, apply for mediation, seek urgent orders, claim compensation or negotiate a practical repair plan.

For related issues, see our guide to Form 7 breach notices in Queensland commercial leases.

How Ensure Legal Can Help

Ensure Legal assists landlords, tenants, centre owners, business buyers, business sellers and property investors with commercial lease issues across Queensland.

We can assist with:

• reviewing repair and maintenance clauses before signing;
• drafting clear landlord and tenant obligations;
• advising on air conditioning, leaking roof, plumbing, electrical and fit-out disputes;
• reviewing outgoings and recoverable maintenance costs;
• advising on retail shop lease obligations;
• preparing or responding to breach notices;
• negotiating practical repair solutions;
• advising on make-good obligations before lease expiry.

For Tenants

Before signing, we can review whether the lease shifts too much repair risk onto you. During the lease, we can help you respond to repair disputes, landlord delays, damage, unsafe premises or make-good demands.

Review your lease

For Landlords

We can draft clear repair clauses, reduce ambiguity, respond to tenant complaints, manage breach issues and protect your position when repair responsibility is disputed.

Draft a lease properly

Frequently Asked Questions

Who is responsible for repairs in a Queensland commercial lease?

It depends on the lease, the type of repair, the cause of the damage and whether the lease is a retail shop lease. Generally, landlords are more likely to be responsible for structural elements and major building issues, while tenants are more likely to be responsible for cleaning, minor maintenance, internal damage and their own fit-out.

Is the landlord responsible for air conditioning repairs?

The landlord is often responsible for ensuring the air conditioning system is working at the start of the lease and for major repairs or replacement. However, the tenant may be responsible for routine servicing if the lease says so. The lease should be checked carefully.

Can a tenant stop paying rent if repairs are not completed?

A tenant should not stop paying rent without legal advice. Withholding rent may breach the lease. The better approach is to review the lease, notify the landlord in writing, gather evidence and obtain advice on breach notices, mediation, rent abatement or other remedies.

Who pays for a leaking roof in a commercial lease?

A leaking roof is often a landlord issue, unless the lease says otherwise or the tenant caused the damage. However, damaged stock, fit-out and business interruption may involve insurance issues, lease terms and evidence of loss.

What is the difference between repairs, maintenance and make good?

Repairs usually deal with fixing damage or defects. Maintenance usually deals with keeping something in working order during the lease. Make good usually deals with the condition in which the tenant must return the premises at the end of the lease.

Do retail shop leases have different rules?

They can. Retail shop leases in Queensland may be affected by the Retail Shop Leases Act 1994 (Qld), including rules about disclosure, outgoings, compensation and dispute resolution. Legal advice should be obtained before assuming the lease is only a standard commercial lease.

Need Help With a Commercial Lease Repair or Maintenance Issue?

Repair and maintenance disputes can become expensive quickly if the lease is unclear or the parties act without proper advice. Whether you are a landlord, tenant, centre owner or business operator, it is better to clarify your position before the issue escalates.

Contact Ensure Legal for practical advice on Queensland commercial lease repairs, maintenance clauses, breach notices, retail shop lease issues and make-good obligations.

Contact Ensure Legal

This article is general information only and is not legal advice. Commercial lease obligations depend on the wording of the lease, the facts, the type of premises and applicable law. You should obtain legal advice for your specific situation.