What Maintenance Services Should You Include in a Commercial Lease?

As a property owner, you should design your commercial lease carefully to ensure both your’s and your tenant’s goals are met. The terms you agree on may last for years or even decades, so it’s important to set up a system where you have reasonable control and your tenants can take on responsibility for their own operational needs. When it comes to maintenance specifically, most commercial leases operate on a Fully Repairing and Insuring (FRI) Lease. This means that tenants are fully responsible for repairs and maintenance service that is needed for the building. This includes regular wear and tear to fixtures like walls and furnishings, as well as preventative care for building appliances. However, there are some services that landlords are liable for in all circumstances, and some services you may want to have a say in as they affect your building’s long-term value. Below are the most common services you’ll want to either contract yourself or work with your tenant to finance:
  • Electrical maintenance – Most states require landlords of commercial buildings to maintain the electrical safety of the building, regardless of what the lease states. This ensures the building is safe to operate and does not breach any fore or electrical codes.
  • HVAC and plumbing systems – While tenants are typically responsible for minor repairs in a Fully Repairing and Insuring (FRI) Lease, you will want to have a say for any major repairs or replacements to these systems. These systems contribute to your building’s overall value, which means you’ll want to choose the contractors hired as well as any replacement appliance or fixture.
  • Exterior maintenance – The exterior of the building, including the roofing and outdoor fixtures, directly impacts both curb appeal and building value over time. While tenants may be responsible, you should work with them to ensure that the core structures of your building are not altered or replaced with cheaper options based on tenant needs rather than your own.
MaintenX works with both tenants and property owners to ensure your commercial facility is in tip-top shape. Our preventative care and repair services can help you maintain a high-performance facility for decades to come. TO learn more about your maintenance options, contact MaintenX today for a consultation.

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