Occasionally, our interests are peaked by posts on the viral Moyock Facebook page. With more than 19K members, the Moyock page is always a good read. We recently saw a post about leasing commercial space and thought we might dive into the deep waters on this one. Here are our thoughts.
The responsibility for painting, carpeting, and other cosmetic repairs in a commercial property is typically outlined in the lease agreement between the landlord and the tenant. The allocation of responsibilities can vary based on negotiations and the agreed-upon terms. Here are common scenarios:
Landlord Responsibility:
- Base Building Maintenance: Landlords often take responsibility for maintaining the structural elements of the building, including the walls and flooring.
- Common Areas: Cosmetic repairs to common areas, such as lobbies, hallways, and restrooms, are generally the landlord’s responsibility.
Tenant Responsibility:
- Interior Tenant Spaces: Tenants are usually responsible for maintaining and making cosmetic repairs to the interior spaces they occupy.
- Tenant Improvements: If tenants have made specific improvements or alterations to the space as part of the lease (e.g., customized paint colors or upgraded carpeting), they are typically responsible for maintaining those improvements.
- Restoration: Tenants may be required to restore the premises to its original condition upon lease termination if they made alterations or improvements.
Shared Responsibility:
- Grey Areas: In some cases, there may be grey areas or shared responsibilities. For example, the lease might specify that the landlord is responsible for structural repairs, but tenants are responsible for cosmetic repairs.
It’s crucial for both landlords and tenants to clearly define these responsibilities in the lease agreement to avoid misunderstandings or disputes. The lease should explicitly state who is responsible for painting, carpeting, and other cosmetic repairs and under what circumstances.
Additionally, the lease may address the frequency of these cosmetic updates. Some leases require tenants to refresh the space periodically, while others may leave it to the discretion of the landlord or tenant.
Before signing a lease, both parties should carefully review and negotiate these terms to ensure they align with their expectations and preferences. Seeking legal advice can be beneficial in understanding and negotiating the terms of a commercial lease agreement.
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