Who maintains the air conditioning in a commercial lease?
When the air conditioning in a leased shop or office needs servicing, repair or replacement, who pays? It comes down to the lease. This guide explains how responsibility is commonly split, and what both sides can do to avoid a dispute.
Who is responsible for air conditioning in a commercial lease?
Responsibility for air conditioning in a commercial lease is set by the lease itself, mainly its repairs and maintenance clause, its outgoings schedule and whether the system is landlord-owned plant or equipment the tenant installed. A common arrangement is that the tenant pays for routine servicing of the equipment serving their premises, while the landlord pays for major repairs and replacement of landlord-owned plant, and may recover some maintenance costs as outgoings.
Leases vary a lot, so always check yours. Retail shop leases in Queensland are also covered by the Retail Shop Leases Act 1994 (Qld). This guide is general information, not legal advice. For your own situation, talk to a property lawyer or your property manager.
How responsibility is commonly split
Common arrangements, not rules. Your lease decides, so check it against each line below.
| Item | Commonly falls to |
|---|---|
| Routine servicing of equipment serving the tenancy | Often the tenant, sometimes through a maintenance contract the lease requires |
| Cleaning filters and minor upkeep | Often the tenant |
| Repairs from wear and tear on landlord-owned plant | Often the landlord, depending on the lease wording |
| Replacing landlord-owned plant at end of life | Often the landlord (a capital cost) |
| Equipment the tenant installed | Usually the tenant, including removal or make-good at the end of the lease |
| Shared or base-building plant | Usually the landlord, with costs often recovered as outgoings |
General information only, not legal advice. The terms of your lease, and any legislation that applies to it, take precedence.
Six things landlords and tenants can do
Most air conditioning disputes come down to unclear responsibility and missing records. These steps head both off.
Read the clauses
Find the repairs and maintenance clause, the outgoings schedule and any air conditioning clause, and see who they make responsible.
Know who owns each unit
Landlord-owned and tenant-installed equipment are usually treated differently. List every unit and who owns it.
Record condition at the start
Get the system serviced and its condition written up when the lease starts, so there's a baseline if anything is disputed later.
Keep service records
A log of every service shows obligations were met, and puts you in a stronger position if a unit fails.
Report faults in writing
Let the other party know about faults promptly and in writing, especially when the repair is theirs to arrange.
Agree who books servicing
Settle who arranges the regular service visits, so it doesn't fall through the gap between landlord and tenant.
Need the system serviced and on record?
We service and maintain commercial systems for landlords, property managers and tenants across Brisbane's northern suburbs, and log every visit.
Commercial lease air conditioning questions, answered
General answers to what landlords and tenants ask us most. Always check your own lease.
It depends on the lease. The repairs and maintenance clause, the outgoings schedule and whether the system is landlord-owned base-building plant or tenant-installed equipment all decide who pays for what. A common arrangement is that the tenant looks after routine servicing of equipment serving their premises, while the landlord handles major repairs and replacement of landlord-owned plant, but leases vary widely. Check your lease and get legal advice if it isn't clear.
Often, if it's landlord-owned plant and the failure isn't due to a lack of the maintenance the tenant agreed to do, but it depends on the wording of the lease. Keep service records, because a tenant who can show the system was maintained is in a much stronger position.
Many commercial leases let the landlord recover some maintenance costs as outgoings. In Queensland, retail shop leases are also covered by the Retail Shop Leases Act 1994 (Qld), which affects how some costs can be passed on. Check the lease and get advice for your situation.
Read the air conditioning and maintenance clauses, find out who owns each unit, and get the system's condition recorded when you move in, ideally with a service and written report. That gives you a baseline if there's a dispute later.
Yes. Coola Air Conditioning services and maintains commercial systems for property owners, managers and tenants, and logs every visit so there's a clear record for both sides.
Book a commercial service
Whether you're the landlord, the property manager or the tenant, tell us about the site and we'll arrange a service and a written record of the visit. Prefer to talk it through? Give us a call.
- Call us(07) 3543 2543
- Emailinfo@coolac.com.au
- Service areaNarangba to the Brisbane CBD