For the most part, renting a commercial space can feel like a relief at first. You’ve got a lease, the keys, maybe a bit of signage going up, and there’s this assumption that the building stuff is handled because, well, it’s not your building. That all makes total sense, so you should be able to save some money on your business. The landlord owns it. There’s a property management company. And there are even service charges you’re probably paying. So, surely that covers the boring responsibilities, right?
But with that part said, though, this is where a lot of new tenants get caught out. Because “the landlord handles it” is not a rule, it’s a guess. Which is a bit scary to think to be honest. And commercial leases are basically built to punish guessing (yes, you read that right). Actually, some responsibilities sit with the landlord, some sit with the tenant, and some are shared in a way that feels confusing until something breaks or an inspection comes up.
The Lease Doesn’t Care What Seems “Fair”
A commercial lease doesn’t run on vibes. It runs on what’s written down. And a lot of tenants sign a lease thinking it’s similar to residential renting, where the landlord usually takes care of most building maintenance. Sure, it makes sense to think this way if this is the first time you’re ever doing this, but that’s it, but no, the commercial is entirely different here. You might be responsible for repairs inside the unit. You might have responsibilities for servicing equipment. You might be responsible for safety checks, depending on what the lease says and how the building is set up.
However, the tricky part is that the landlord can still handle certain things while you’re still responsible for outcomes inside your space. So the building might maintain communal areas, but you still have to operate your unit safely. It’s not always a neat handover. Just generally speaking here, if you’re ever tempted to say “that’s not my problem,” check the lease first. It might be.
Sometimes, Compliance is On You
Well, not all the time, of course, just sometimes it can be solely on you, sometimes on the landlord, and sometimes it’s shared. It just depends on what it is exactly. But it’s fairly common for a landlord to cover only structural or communal elements. This can include things like servicing shared HVAC systems, maintaining fire alarm systems in communal areas, and managing building-wide safety measures. But you still might have responsibilities for your own equipment, your own staff, and your own records.
And yes, water systems fall into this grey area too. Which can probably be fairly surprising, right? Actually, this could even be considered fairly stressful. So, depending on the building setup and what your lease says, responsibility can sit with the landlord, the tenant, or both. Like what was said earlier, it’s not always about what seems fair, and this is honestly just one of those aspects.
For example, it’s not too uncommon for businesses to need Legionella risk assessments, being needed, and so sometimes having this tested (that and paid to fix) can sometimes be on the tenant, landlord, or both. Honestly, the same goes for safety, too; it just really depends.
The Difference Between the Building and Your Unit Matters
So, a lot of responsibilities are split between communal areas and your specific space. Communal areas might include lobbies, stairwells, lifts, shared toilets, plant rooms, and shared hallways. Your unit is your shop floor, office, stock room, break area, and any private facilities you control. But the split isn’t always obvious, especially in mixed buildings. Like, a ground-floor retail unit can still be connected to shared services, an office suite can have shared ventilation, or a salon can have plumbing that ties into the wider building.
But you get the idea here, that’s all really common for businesses anyway. So, when it comes to those connections, well, they can impact what you’re expected to manage or report. And it’s even for those who might own a unit, rather than rent (as usually there is an owner of the building itself or a management company, an association, something like that).
So one of the most useful habits as a tenant is logging issues early and in writing. If you spot something that might be building-related, report it. If you fix something that you’re responsible for, keep records. Yeah, by all means, here this is super boring advice, but it’s protection.