Health Law Highlights

Importance of Negotiating Maintenance, Repair and Replacement Obligations in Health Care Leases

Summary of article from Epstein Becker Green, by Allison S. Zangrilli, Zlata Fayer:

Tenants are often held responsible for the repair and maintenance of mechanical systems in leased premises, which can lead to significant costs. To mitigate this, tenants should inspect these systems before signing the lease and negotiate a warranty period with the landlord for any necessary repairs or replacements. Additionally, tenants should negotiate for the installation of any additional systems they require during the letter of intent phase. A carve-out for latent defects should be included in the lease, and tenants should negotiate to ensure costs for maintaining structural components are not passed onto them. Detailed negotiation of maintenance, repair, and replacement obligations is crucial to protect tenants and should be outlined in a letter of intent to clarify expectations and streamline the negotiation process.