Tenants are generally required to repair and maintain their premises during the term. Tenants should carefully review and negotiate the definition of “premises” to ensure that premises refer only to the interior of the space they are leasing so that they are not unwittingly taking on repair and maintenance obligations relating to items such as a HVAC unit that services more than one unit or structural elements of the building in which their space is located. The tenant’s maintenance obligations should always be subject to reasonable wear and tear.
It is very important from a tenant’s perspective that its obligations at the end of the term are clearly defined in the Lease. Tenants are sometimes surprised to discover that at the end of their lease term, they are obligated, not only to remove any improvements they may have made to make the premises suitable for their operations but also to make good any damage caused as a result of the construction or removal of such improvements. For example, if a tenant had constructed shelves or put in a concrete floor in the premises, it would have incurred costs to do so in the first place, and would then, at the end of the term, be further obligated, to remove such shelves or tear out the concrete floor, at its own expense, and repair all damage caused by such removal.
For a discussion of additional items relating to commercial leasing from the tenant’s perspective, please see click here.
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