Categorized | Leases

Commercial net leases – is it normal practice for tenants to make all improvements to their leased space?

On a net lease, the tenant pays at least a part of the maintenance expenses. Is it common practice for the tenant to pay to repaint and recarpet their leased space when needed through ‘normal wear and tear’?

no

and with LL needing tenants more than tenants need them…

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4 Responses to “Commercial net leases – is it normal practice for tenants to make all improvements to their leased space?”

  1. John M says:

    yes, for a triple net lease it’s common, but not always the case. it will be spelled out in the lease and you should explore arrangements of mutual advantage when you negotiate the lease. An example might be if the owner of the property has a large maintenance staff for other reasons and can accomplish the necessary updates at a lower cost than you are likely to find in the marketplace. you may find it to your mutual advantage to have paint and re-carpet at specified intervals included in the rent. But the typical arrangement would be that you pay for that stuff in a triple net lease
    References :

  2. Kiltman K says:

    Yes, in nearly all cases it’s normal for the tenant to pay any upgrade or interior maintenance costs. It’s also quite normal to pay for maintaining heating & air conditioning equipment if it’s specific to the leased unit.

    If you’re just moving to a new leased space you can sometimes get leasehold improvements paid for by the leaseholder if they want you terribly enough, but once in the lease these usually become the lessee’s expense.
    References :

  3. kemperk says:

    no

    and with LL needing tenants more than tenants need them…
    References :
    RE broker

  4. gafpromise says:

    Yes, that is rarely the landlord’s responsibility. It is nearly always the tenant’s responsibility. Check your lease, it should specify whose responsibility it is.
    References :

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