Outgoings in commercial leases are the operating expenses associated with maintaining and running a property. These can include council rates, water charges, insurance, maintenance, cleaning, security, and management fees. Depending on the lease type, tenants may be responsible for paying some or all of these costs in addition to base rent.

To maximise returns, landlords should ensure outgoings are clearly defined and recoverable in the lease agreement. Regularly reviewing expenses, using competitive service providers, and maintaining the property efficiently can help control costs. Transparent communication with tenants and accurate record-keeping also reduce disputes and ensure smoother cost recovery, ultimately improving the property’s overall profitability.