When you walk into your business premises and see the roof is leaking, your focus is going to be on getting the problem fixed as soon as possible. But what should you do in this situation?
We’ve put together some simple steps to help you get damage to your business premises repaired in a timely manner.
Step one: minimise further damage and check your lease
If it is safe to do so, take reasonable steps to prevent the damage from getting worse. For example, moving stock or equipment away from the leak, placing buckets under dripping water or turning off affected equipment.
Do not carry out permanent repairs without first notifying the landlord. Unless the situation is urgent and temporary action is needed to prevent further damage or make the premises safe, limit any work to temporary measures where possible.
You should also check your lease. The lease should set out who is responsible for repairs, how the landlord must be notified and whether you need the landlord’s consent before arranging any repair work yourself.
Step two: notify your landlord and identify responsibility
Notify your landlord or managing agent in writing as soon as possible. Include details of the damage, when you first noticed it, how the damage is affecting your business and photos or videos of the damage.
If the damage appears to be the landlord’s responsibility, ask the landlord to inspect the premises and arrange repairs within a reasonable time. In most leasing arrangements, the landlord is responsible for structural repairs to the building, but this will depend on your lease and what caused the damage.
If the damage may have been caused by your business (eg: your fit out, equipment, staff or customers), tell the landlord and ask what they require before repairs are arranged. You may need to obtain quotes from appropriately qualified contractors and obtain the landlord’s consent before work starts.
Tip: Text messages may not be accepted as formal written notice. Check your lease for details on how you should notify the landlord in writing (for example, if a letter is required or an email is suitable). If you’re sending an email, be sure to send it to the email address the landlord uses to communicate with you.
Step three: inform your insurer and keep records
Contact your insurer as soon as possible, even if you are not sure whether the damage is covered. Your insurer can tell you what information they need and whether you should take any further steps before repairs are carried out.
Keep clear records of the damage and its impact on your business, including photos, emails, quotes, invoices and details of damaged stock or equipment, lost trading time, cancelled bookings and additional costs.
These records may be important if there is a later dispute about responsibility for the repairs, compensation or insurance.
Get professional advice
If you and your landlord are in dispute over who is responsible for repairs, you can receive practical advice on a range of leasing issues by speaking to one of our commercial tenancy advisors via our free business advisory service. (Please note: we do not provide legal advice).
Depending on the cost, the damage and impact on your business, you may need to seek legal advice.
Our business advisory service can also help you resolve business disputes by providing you practical steps you can take or referring you to our dispute resolution service where appropriate.
You can access our advisory services by calling 133 140.
Tip: Before leasing commercial premises, request a property condition report to ensure the property is in good condition before you agree to repairs and maintenance of any kind.
Time for a risk management plan?
Having a risk management plan can help you plan around, and manage, any disruptions to your business operations, such as damage to your premises as a result of wet weather and/or any other situation that may have a negative effect on your business.
Read our risk management information for a step by step guide on how to prepare a risk management plan, including a risk analysis matrix to help you determine the level of risk to your business certain situations would present.
In summary
- Check the lease because it will likely say who is responsible for repairs, how notice must be given and whether the tenant needs consent before carrying out works.
- If the damage appears to be the landlord’s responsibility, notify the landlord in writing and give them a reasonable opportunity to arrange repairs.
- If urgent steps are needed to prevent further damage, the tenant can take reasonable temporary steps to minimise damage but should still notify the landlord as soon as practicable.
- If the damage was caused by the tenant’s business activity, such as an air conditioning installation, exhaust fan, fit out works, equipment, employees or customers, the tenant will likely be responsible. The tenant should still notify the landlord and use suitably qualified contractors to carry out the repairs.
