In Short
- Check Your Lease – Review clauses related to property damage, rental abatement, and relocation to understand your rights and obligations.
- Landlord Responsibilities – Landlords are typically responsible for structural repairs, but some may try to shift costs to tenants.
- Act Quickly – Notify your landlord in writing about any damage and know your options if repairs are delayed.
Tips for Businesses
Extreme weather can disrupt operations, so prepare by understanding your lease terms before an event occurs. Ensure your insurance covers business losses, document property conditions regularly, and communicate promptly with your landlord if damage occurs. If repairs are delayed, explore legal options, including rent reductions or lease termination.
While extreme weather events may not occur often, it is vital to consider your rights and responsibilities as a tenant if your property is affected. Most leases contain a standard clause regarding property damage, so take a moment to review it. Understanding how it operates will help you grasp your obligations and, more importantly, the landlord’s responsibilities concerning repairs. This article highlights the key considerations for tenants dealing with property damage caused by extreme weather.

A factsheet that sets out the three ways to end a commercial lease in Australia: surrendering your lease, assigning it or subletting it.
Damage Clauses
Clauses relating to the damage or destruction of premises will typically include provisions that require you to provide written notice upon discovering the damage. An extreme weather event is classified as damage not caused by you as the tenant. Therefore, you are unlikely obligated to repair or reimburse the landlord for damages of this nature. This is because they are typically covered under the landlord’s building insurance.
Clauses like this often state that you are not required to pay rent when the premises are unusable. They may also grant the landlord discretion on whether to:
- repair the damage; or
- provide you with notice of the lease termination.
Additionally, suppose the landlord does not repair the damage within a specified timeframe or a reasonable period. You may be able to terminate the lease by providing the landlord with the notice period outlined in the lease. Importantly, this can vary depending on the specifics of the document and what has been agreed upon between the parties.
Rental Abatement
There may also be a rental abatement clause within the lease that covers damage to only part of the premises. Effectively, suppose the premises is still usable but a portion of the premises remains damaged. In this case, the rental amount will decrease to the number of premises that you use. Typically, this is calculated on a square metre basis. However, you should be aware of this if the premises become damaged.
Continue reading this article below the formRelocation
Similarly, the landlord may include a clause in the lease that requires you to relocate the premises. While this is usually included in shopping centre leases when works are to be carried out on a specific part of the building that includes your premises, it may also be included in cases where damage to the premises occurs without your fault as the tenant.
Obligations of the Landlord
While you should be aware of the above, it is also important to note what the landlord must do under the lease. This will influence how you use the premises and negotiate any terms.
The most common provision in any lease, which should be clearly outlined, is that the landlord is responsible for maintaining the structural condition of the building and premises. This excludes cases where the lease is classified as a retail lease, as the landlord may have a legal obligation to maintain anything, including the structure of the premises. This responsibility may involve ensuring that the building is watertight.
When Do These Rights Apply?
The aforementioned rights and obligations typically apply only where damage to the premises is not caused by you. While extreme weather conditions may cause damage, it is essential to ensure that you maintain the premises in good repair. This way, you avoid being liable for any damages the landlord may claim if they determine that you contributed to the premises’ damage.
Key Takeaways
It is vital to remember these considerations at the start of your tenancy in case any extreme weather event occurs and causes damage to the property. If possible, aim to include damage clauses in the lease and ensure that you aren’t liable for any damage not caused by you.
If you require assistance negotiating any lease terms with a landlord or if your premises has suffered any damage caused by extreme weather, our experienced leasing lawyers can assist you as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers who can answer your questions and draft and review your documents. Call us today at 1300 544 755 or visit our membership page.
Frequently Asked Questions
Am I responsible for repairing damage caused by extreme weather?
No, as a tenant, you are generally not responsible for repairing damage caused by extreme weather events. Most leases include clauses that classify such damage as the landlord’s responsibility. It is typically covered under the landlord’s building insurance.
Do I need to notify my landlord if the property is damaged?
Yes, most leases require you to provide written notice to your landlord. This is typically completed as soon as you discover damage to the property. Check your lease agreement for specific notification requirements.
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