Q: Can commercial landlord force tenant to pay a capital expense?
My business lease includes the tenant pay for HVAC repairs. HVAC quarterly maintenance is paid for by lessor. The HVAC is 25 years old, not working well with regularly break downs and needs replacement. One attorney site indicates HVAC replacement is a capital expense as the landlord will continue to benefit from a new unit long after my lease expires. Can the landlord be held liable to replace the HVAC unit or reimburse me for the cost as tenant?
A: In commercial landlord-tenant law, almost everything is governed by the lease terms. Many commercial leases, but not all, do indeed require the tenant to repair and/or replace HVAC systems and other such infrastructure items. Your current lease may expire before the anticipated life span of a new HVAC system but leases can renewed, extended, or re-negotiated and as a general rule, the landlord has no duty to even provide either heat or air conditioning at the start of a lease. So read your lease carefully or go to a local landlord-tenant attorney to learn your rights and your obligations. Good luck.
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