Protecting The Best Interests Of Commercial Clients In The Construction Field And Other Industries

Who makes repairs on a commercial property?

On Behalf of | Jun 19, 2024 | Real Estate Law |

When a business owner signs a commercial property lease, it’s important for them to know exactly what they are responsible for. Likewise, the landlord or property owner needs to clearly understand who will be responsible for which costs. These could go far beyond simply paying the rent.

So who is responsible for repairs, maintenance and upkeep? The business owner who is using the space may believe that the landlord should be responsible since it’s their property. At the same time, the property owner may feel that the business owner should cover maintenance because they are the only one using that property and making said maintenance necessary. Who is correct?

It depends on the lease

It all depends on the type of lease that was signed at the beginning. For instance, it may be a single-net lease, a double-net lease or a triple-net lease. The most basic lease will likely just include the monthly rent payments, but the different “nets” can add in costs such as property taxes or insurance premiums on the building itself.

As a general rule, a triple-net lease is the one that adds in the upkeep and maintenance costs. If that’s the type of agreement that the business owner signed, then they do have to pay for maintenance. If they did not, then the responsibility may still be with the property owner – regardless of how the damage occurred. 

Of course, every lease can be unique, so it’s very important for both sides to understand exactly how the agreement was drawn up, what obligations they have and what legal steps they can take if there’s ever a dispute.