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Leases (Commercial and Retail) Act 2001
70Recoverable outgoings
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70 Recoverable outgoings
(1) The lessor may only recover the following outgoings in relation to
leased premises from the tenant:
(a) an amount that is a reasonable expense directly related to the
operation of, or a reasonable expense of repairing or
maintaining—
(i) for premises located in the retail area of a shopping
centre—an area used for or in connection with the retail
area of the shopping centre that contains the premises; or
(ii) in any other case—the building that contains the premises;
(b) rates, taxes, levies or other statutory charges payable by the
lessor because the lessor is the lessor or occupier of the building
that contains the premises, or the lessor of the land on which the
building is located;
(c) in relation to premises located in the retail area of a shopping
centre—an amount that is a reasonable cost of promoting the
premises or centre;
(d) an outgoing for expenditure incurred in obtaining statistical
information.
(2) However, if the accounting system used by the lessor is a cash
accounting system, the lessor may only recover from a tenant an
outgoing mentioned in subsection (1) (a) or (b) if the expenditure is
made during the term of the lease.
(3) Also, a lessor may not recover an outgoing from a tenant in relation
to premises if the lessor has already recovered the outgoing from a
previous tenant of the premises under a different accounting system.
(4) Further, subsection (1) (a) (ii) does not allow the lessor to recover
from the tenant an outgoing in relation to premises that are usually
leased but are currently unleased.