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Most, if not all, commercial leases will contain some form of tenant obligation to repair and decorate the premises.
What you may not know is that:
- Unless otherwise stated, the obligation is not related to the condition of the premises when the lease was granted or assigned (see Schedules of Condition).
- If not fulfilled at the end of the term the landlord can carry out the works afterwards at the tenant’s expense and include the cost of rent and rates for the period the works require.
- The lease may contain provisions allowing the landlord to enter onto the premises during the term to repair the building and then charge the cost back as an expense.
- Unless otherwise agreed, commercial leases can include liability for latent defects.
Clearly, repairs and decoration are of considerable importance and a little legal and surveying advice prior to entering into a commitment is more cost efficient than sorting out an inherited legacy of disrepair.
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