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ARTICLE · 31 OCTOBER 2017

Approaching outgoings in lease negotiations

DibbsBarker
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Both landlords and tenants should pay close attention to the terms of the outgoings provisions when negotiating a lease.

AustraliaReal Estate and Construction
Bill Burrough
Bill Burrough
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Services: Real Estate & Construction
Industry Focus: Real Estate & Construction

What you need to know

  • The costs associated with a landlord's 'outgoings', from building maintenance to rates and taxes, can be addressed in a lease in several different ways.
  • Outgoings often become a hot topic in lease negotiations, with landlords seeking to pass on those costs and tenants seeking to ensure they fully understand exactly what they are expected to cover.
  • Both landlords and tenants should pay close attention to the outgoings provision in any lease they are negotiating, to ensure their terms are clear and they reduce the risk of surprise or disputes arising.

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