Net vs Gross Lease Part II

​Maintenance Responsibility
The maintenance of the property is always a hot button issue during lease negotiations. This presents an opportunity to understand the potential future liabilities that will be incurred during the term of the lease, and attempt to limit your exposure.  In a true Net, or triple net (NNN), lease the tenant is responsible for all maintenance to the property, including roof, structure and foundation.  In most Gross leases the tenant is responsible for all maintenance to the property except the structural integrity of the roof (not membrane), structure and foundation.  But as we indicated in Part I of this article, most leases are a hybrid variety where both landlords and tenants are looking for the other party to be responsible for specific maintenance items.  There are many compromises that can be agreed to.  The most important aspect for either party is to be clear on who is responsible for these items up front so that you can, as much as possible, understand  potential future liabilities. 

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