One issue that can lead to contention between commercial property owners and their tenants is who has to pay for maintenance. If the property begins to break down and maintenance is expensive, the tenant may say that they believed the owner would keep that property in good repair. At the same time, the owner may say that it is the responsibility of the tenant, who uses the space on a daily basis.
Which side would be correct in this hypothetical example depends entirely on how the lease was constructed. It is certainly possible for a tenant to have a lease stating that their only obligation is to pay the monthly rent and that all other ongoing costs will be the responsibility of the owner. But often, the lease is set up in such a way that it shifts certain financial responsibilities to the tenant, and it is important for them to understand when this is true.
The number of nets
Commercial leases are often referred to as having nets, such as a net lease or a triple net lease.
With a net lease, for example, the tenant has to cover maintenance costs, fees and taxes. With a triple net lease, they have to cover maintenance, repair costs, property taxes and building insurance.
Ideally, the lease will clearly define who is responsible for the ongoing costs associated with that property, which may go far beyond the lease itself. However, there can sometimes be disputes over ambiguity in the contract or simply because one party is unaware of exactly how that contract was written and what obligations it creates. When these types of commercial property disputes arise, those involved need to know what legal steps to take.
