Drafting commercial leases? A surveyor’s view

Timely maintenance would have avoided this but who pays and when?If you’re drafting a lease for a commercial Landlord there are a few things to think about that go beyond the ‘standard’ template or precedent documents.

External redecoration – It’s better to paint in the summer than the winter so rather require painting ‘in the final year’ or ‘in the last three months of the term’ why not say, for example ‘between May and September’ preceding the Termination Date? This would require the redecoration to be done during the better weather?
Might it be also be possible to make an express requirement to the effect that if the Tenant defaults the LL can do the work and charge it as a debt?

Internal redecoration – The Landlord always wants the building freshly decorated at the end of the lease so why do leases allow Tenants to redecorate in the ‘final year of the term’, for example. What is wrong with ‘during the last month of the term’?

Retail units are always a source of dispute for surveyors. The sales area is often let as a ‘shell’ and a new Tenant will want to decorate and fit it out to suit his business so what is the point in redecorating and repairing minor defects? Claims for such could well be disputed on a Sn 18 basis anyway. In most cases redecoration of all parts excluding the sales area would be appropriate.

Painted and plastic coated metal cladding doesn’t last for ever without maintenance. Manufacturers give a time to first maintenance of between 20 and 30 years depending on aspect, colour, environment etc. Older coatings will be less durable requiring maintenance sooner.
In practice cladding receives no maintenance until the coating starts peeling and the cladding starts rusting. It does seem unfair to make the Tenant on, say, a three year lease of a 25 year-old unit pay for a maintenance treatment. Has anyone any ideas how the Landlord could be protected?

Leases often call for maintenance and reinstatement of the Landlord’s fittings. Without a schedule at the start who can tell what was there? I’ve had debates over whether ceilings and lighting were installed by the LL or by the Tenant; neither could prove one way or the other.

Lease plans – Often lease plans and the description of the demise are so poor that interpreting the scope of any alterations made by the tenant impossible. It follows that seeking reinstatement is equally difficult. Why not consider having layout plans attached to the lease; they need only be sketches.

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