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.