An Extraordinary Repairs Clause is a critical component in many commercial lease agreements. It clearly outlines which party—the landlord or the tenant—is responsible for covering significant and unusual repair costs. Unlike routine maintenance tasks such as fixing a leaky faucet or replacing light bulbs, extraordinary repairs include major structural repairs or the replacement of essential building systems like the roof or HVAC.
This clause is designed to protect both parties by setting clear financial expectations for costly repairs that don’t occur regularly. For tenants, it prevents being burdened with the cost of substantial upgrades or replacements that extend beyond their lease term. For landlords, it protects their investment by clarifying when repair costs caused by tenant misuse or negligence should be the tenant’s responsibility.
Typically, leases categorize repairs into ordinary and extraordinary. Ordinary repairs are day-to-day upkeep, often assigned to tenants, like patching walls or routine pest control. Extraordinary repairs require more significant expense and intervention, such as roof replacements, foundation fixes, or major HVAC system repairs, and are usually the landlord’s responsibility unless otherwise negotiated.
For example, in a commercial lease for a retail space, a well-drafted Extraordinary Repairs Clause might state that the landlord is responsible for structural repairs and major mechanical systems, while the tenant handles cosmetic or minor interior maintenance. This distinction can save both parties from lengthy disputes if an expensive repair is needed during the lease term.
When reviewing or negotiating a lease, tenants should carefully read this clause and seek to negotiate limits or definitions that feel fair, particularly for short-term leases. Landlords benefit from clear, specific language to avoid ambiguity and potential legal conflicts. Consulting a real estate attorney when drafting or reviewing leases is highly advisable.
Avoid vague terms like “maintain the premises” without examples, and clearly differentiate between maintenance duties and replacement obligations. Properly understanding and addressing the Extraordinary Repairs Clause ensures transparency and protects financial interests throughout the lease period.
For more details on lease terms and maintenance responsibilities, see our related article on Commercial Lease Agreements.
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