Following changes under the Retail Leases Amendment Act 2020, a landlord can now pass on to their tenant the costs of repairing, maintaining and installing as part of a fit-out, essential safety measures (ESM).
ESM include smoke detectors, sprinkler systems, fire extinguishers, fire exit signs and annual safety inspections.
Members should be aware that this can only happen if the lease and disclosure statement or annual estimate of outgoings make note and require the tenant to do so.
An amendment to the Retail Leases Act 2003, these changes apply to new and existing leases – however, landlords are unable to recover ESM costs that they have already paid.
For more information
Victorian Small Business Commission: Changes to retail leasing and what this means for Victorian tenants and landlords