When you step into a new commercial lease, it’s important to be clear about what repair responsibilities you’re agreeing to take on. Most lease agreements start with a “full repair” obligation, which could mean you’re responsible for keeping the building in excellent condition. But don’t worry, depending on the state of the building, there are ways to negotiate terms that are easier to manage. Here’s how you can approach this:
Commercial Building in Excellent Condition
If you’re renting a commercial building that’s in great shape, you might initially face the task of maintaining everything to a high standard. To make this more manageable, you can negotiate terms that limit your responsibilities, particularly for bigger structural repairs. You might also arrange to set a cap on potential repair costs, helping you avoid any unforeseen financial burdens.
Commercial Building with Some Wear and Tear
For buildings that show some age or have been used for a while, they too often start with a full repair obligation. Here, it’s wise to negotiate a “Schedule of Condition” to clarify your duties. This means your repair responsibility is limited to maintaining the building as it was when you moved in. By documenting its initial state, you can protect yourself from having to foot the bill for pre-existing issues.
Commercial Building in Poor Condition
If you’re dealing with a building that needs a little extra TLC, you might still be greeted with a full repair responsibility. However, you can aim to change this to a “wind and watertight” obligation, which focuses your duties on essential fixes, like stopping leaks and ensuring basic weatherproofing. Clearly spelling this out in your lease can help you avoid unexpected obligations and costs.
To successfully navigate these scenarios, it’s critical to consult with a solicitor. They can offer the insights and backing you need to ensure you’re agreeing only to responsibilities that align with the state of the building you are receiving.
Our commercial solicitors will work with your landlords’ “full repair” starting position and aim for a balanced agreement to protect your interests. Please use our web form or contact our offices by phone to discuss your particular commercial lease repair responsibilities. We can then arrange a meeting to walk through the lease and assist you further.
Navigating repair responsibilities on a commercial lease isn’t always simple so you may need professional help or legal advice. Our commercial lawyers can talk you through the commercial repair responsibilities, review the proposed lease, and advise you further. Please use the form on this page to arrange for a call back or a meeting to discuss your needs further.
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