Articles & Resources

First, we need to know that there are 3 main obligations when it comes to taking care of the property:

  • MAINTENANCE
  • REPAIR
  • REPLACEMENT

Within those 3 obligations, there are 2 subcategories:

  • INTERIOR vs EXTERIOR
  • STRUCTURAL vs NON-STRUCTURAL

It is important that each lease should outline who is responsible for these 3 main obligations to avoid any confusion or having to go to court to have it decided.

Does It Matter If It Is A Net Lease Vs A Gross Lease? 

IF the Tenant is signing a NET lease then the Tenant will:

  • pay Base Rent + TMI/CAM/Additional Rent
  • be responsible for doing the MAINTENANCE/REPAIR/REPLACEMENT and paying for it out of its own pocket

IF the Landlord is signing a GROSS lease then the Tenant will

  • pay Base Rent ONLY
  • NOT be responsible for doing the MAINTENANCE/REPAIR/REPLACEMENT or its costs

Ideally, the tenant would only want to be responsible for interior non-structural repairs and ordinary cleanliness.

What’s The Difference Between Maintenance Vs Repairs? 

  • Maintenance typically is an ongoing obligation to “maintain” the condition of the building and its operations; to prevent the building’s deterioration. Examples of maintenance include:
  • Routine equipment servicing.
  • Repair contemplates “fixing” a portion of the property that is already damaged.

What’s The Difference Between Structural Vs Non-Structural? 

Structural elements mean those which are necessary to hold the building together, such as:

  • Foundations.
  • Walls.
  • Roofs.
  • Floor structures.

Non-structural elements are all those except those above, such as:

  • Partition Walls.
  • carpeting or wall covering.