Tenants need to be aware of potentially onerous lease repairing obligations.
In a commercial leases, the tenant will normally be expected to keep the property in a good state of repair and condition throughout the term of the lease. The costs of any repairs will have to be met by the tenant.
Tenants need to be aware that the repairing obligation includes the requirement to PUT the property into repair if it is in disrepair when the lease commences.
The extent of the repairing obligation will be in respect of the land or building that is leased so tenants must check carefully which parts of the property they will be responsible for.
It is therefore important that the definition of the property within the lease is as precise as possible.
Repairing obligations can be very expensive and so any prospective tenant should ensure they thoroughly inspect the property and possibly have a survey carried out in order to determine what the repairing liabilities are likely to be.
At the end of the lease, the landlord will expect the property to be handed back in a good state of repair and condition – whatever state it was in when the lease commenced. This could mean that the property is actually handed back to the landlord in a better state of condition than when the tenant took occupation.
If the state of the property is particularly bad, then a tenant can protect itself by agreeing a schedule of condition with the landlord at the start of the lease.
This would limit the repairing obligations so that the property would be handed back in the same condition as at the start of the lease.