Why You Need A Robust Repairing Covenant In Your Commercial Property Lease

Many business owners see a commercial property lease as a standard lease or contract. However, there is fine print that needs to be looked at carefully. This is where the disputes of the future can be lost or won. Which is why you need to speak to our commercial property lawyers to ensure that you have a robust repairing covenant in your commercial property lease.

There are a few common commercial property disputes that can turn out to be extremely costly. One of these is the disagreement around the state of the property. By having a robust repairing covenant in your commercial property lease you are setting a baseline for both parties. You are laying out what the tenant needs to do keep the property in good order. You are also clearly stating what the landlord is expected to provide.

Our commercial property solicitors will make sure that a range of topics are covered. For example, scope. This is where it is clearly explained whether obligations cover the interior only or if they cover the roof, external walls, windows and common parts for example. If the commercial property lease is for multi-let buildings, it must align repairing duties with service charge obligations too.

When stating the standard of repair, it is important that vague terms like ‘good condition’ are avoided. These need to be clearly defined instead. For example, as a landlord you could request that the commercial property requires repair to no worse condition than at the start of the term. You may choose to add that fair wear and tear is expected.

It is a good idea to attach a photo-rich schedule to show what the property looks like and the state it is in at the commencement of the tenancy. This will have to avoid any queries or disputes at the time of property inspections or the end of the tenancy.

You will need to include why pays for the compliance with health and safety, environmental rules and accessibility too. If improvements to the property are needed to meet these rules and guidelines, who is expected to pay for them? Will the costs for these improvements to the commercial property be paid for by the landlord, tenant or both?

There may be services and plants that need to be kept serviced and maintained. The lease should clearly state what need servicing or maintaining as well as who will manage this. In addition, the evidence required must be clearly stated too.

Here at Burgh Thorpe Solicitors, we have a team of commercial property lawyers that specialise in commercial property leases. We will help to ensure that the clauses are as precise as possible. This will help to avoid nasty surprises later down the line.