Repair Covenants In Commercial Leases

1. Introduction

In recent years the commercial lease has assumed significant proportions, with more emphasis than ever being place on the commercial concerns affecting both landlords and tenants. One of the most critical concerns for both parties is their repair obligations in respect of the property. This update is a brief consideration of the salient issues.

2. Repair Obligations

Broadly speaking, a tenant will be leasing either an entire building or part of a building in a multi-let situation. In respect of the former, the lease should be drafted so as to include a full repairing covenant on behalf of the tenant. In respect of the latter, the tenant's repairing obligations should be limited to the interior of the premises being leased, while the landlord remains responsible for the structure of the whole building and for all areas not being leased. In this situation the lease should provide