Q&A

Question: Who pays the rates in relation to a lease?

In commercial leases it is common practice that the tenant pay the rates in relation to the lease. These are known as ‘outgoings’, which include the tenant’s own telephone, electric and gas bills, and the landlord’s outgoings such as land and water rates, taxes and levies. The party responsible for payment of outgoings must be specified in the lease, together with how the amount of outgoings is determined and how they are to be paid or recovered.

For more information see our article on the legal obligations of a tenant in a commercial lease.