Are structural issues in a building that we're renting our responsibility?
Hi everyone, we have a different structural problem in the building we are renting for our business, and the landlord is refusing to fix it and keeps saying that it is our responsibility to fix it. We need the advice to know if structural issues with the building are our responsibility or not.
Thank you in advance!
ColorAll LLC
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Answers (1-10)
Commercial Leases are all different and have very strong content on who's responsible for what. You should of used an Attorney for your lease and you should know what type of rental it is for example, straight out rent only plus utilities usually means the Owner of the building would be responsible for your repair. Alterations are your responsibility. Next, triple net means your responsible for everything. Read your lease carefully and get advice from an Attorney. Buyer or Renter Beware!
This will depend on your lease agreement and whether or not a reasonable inspection would have disclosed it. In a commercial building, my "gut instinct" is the landlord should be responsible. But without reviewing the lease and know more facts, I cannot provide meaningful legal advice. I do offer in person or secure video conferences.
Unless you were naive enough to agree to the repair of structural issues in your Lease Agreement, this would never be a tenant's responsibility in either a commercial, or residential, rental scenario, unless the tenant somehow created the structural issue. It would be helpful to know more specifics, but this is my legal opinion based upon your reference only to "a different structural problem in the building...". How is it different??
What kind of structural issues? Are you speaking of structural improvements that were not permitted? Or structural damage?
If it were a residential lease, I would say you are NOT responsible, but since it is a commercial property, I would refer back to your lease terms and see what that specifies. Commercial leases are quite different from residential leases and shift a lot of the items to the lessee. The best course of action would be to take the lease to a Real Estate Attorney for review and have him/her render the opinion.
I agree with Attorney Wilson. As a consultants we always try review the lease from a laymen's stand point with our clients prior to signing as a educational step. Then we strongly recommend they have it reviewed by an attorney preferably with a RE background. I have the feeling you are holding something back about the repair situation...maybe you broke something? Spend the time and money to have it reviewed by an attorney and make sure you tell it all in an effort to get the correct answer.
If it is an oral lease, or your written lease does not specify, state statutes will dictate who is responsible. If there are no statutes with regards to the matter, you'll need a good Attorney to direct you.
With respect to residential, in almost any state it would be the landlords issue. Commercial is more like the wild west. Most commercial leases in MA would clearly define (or attempt to) the duties of both parties. In general, there is what is called a NNN lease which would likely put the responsibility on the tenant. Any improvements in these leases are generally the responsibility of the tenant, as are all cost associate with the property. NNN leases are most common in larger free standing structures. A lease on a smaller structure, or one attached to other rental units would most likely have structural issues as a landlord's responsibility. As a disclaimer, this is not legal advice and I am not acting as anyone's attorney.
A typical commercial lease places most or all of the responsibility for repairs and maintenance on the tenant, except that the tenant's obligations may be limited in respect of reasonable wear and tear, and the landlord may be responsible for structural repairs. The obligations under the lese may be described as being those of a "prudent tenant" and "prudent landlord "or that the premises must be maintained to a "first class" standard. A large body of court decisions has developed around the interpretation of the words "structural repairs" "reasonable wear and tear ",and "prudent". Refer to article on: martindale.com/real-estate/article_Miller-Thomson-LLP_1653600.htm
Structural problems due to normal or natural wear of a building whether commercial or residential should be that of the owner or management company. Natural occurring things such as rainstorms, earthquakes, floods. Normal wear anything that affects its structure and function due to age; plumbing, paint, electrical, etc. Tenants should be accountable for any irresponsible damages.