When leasing a commercial space, one important (and often overlooked) detail is who’s responsible for the heating, ventilation, and air conditioning (HVAC) system, including maintenance, repairs, and even full replacements. It’s common for tenants to discover after something goes wrong that they’re responsible for the costs.
Understanding who pays for HVAC expenses is essential for both tenants and landlords. It helps set expectations and can prevent unexpected and expensive surprises.
Review Your Lease — And Get HVAC Responsibilities in Writing
Already leasing a space? Check your agreement to see if you’re responsible for HVAC repairs or maintenance. If you’re about to sign a lease, ensure that those responsibilities are clearly outlined in the document. Whether you are a landlord or a tenant, don’t rely on verbal promises. Getting written clarity upfront will save you from costly surprises later.
Who Handles What? HVAC Responsibilities of Landlords and Tenants
Whether you’re a small business owner or part of a larger company leasing commercial space, it’s essential to know what your contract says about HVAC costs. Who pays for maintenance, repairs, or replacement should be clearly specified in the agreement—ideally, before any issues, including emergency services, arise.
Here are four common ways a HVAC clause is handled in commercial leases:
1. Landlord Has Full Responsibility
If the HVAC system serves multiple tenants, such as in a multi-story office building, it’s usually the landlord’s responsibility to maintain it. However, that doesn’t mean it’s free; costs are often factored into your rent or appear as shared maintenance or building fees.
2. Tenant Has Full Responsibility
If your space has its own HVAC unit, chances are you’re fully responsible for keeping it running. This setup typically holds each tenant responsible for their maintenance and repairs. The downside is having a neighbor who doesn’t care for their system, and their mess becomes yours. This can create unexpected expenses and downtime.
3. Tenant Has Limited Responsibility
In some leases, tenants are responsible for handling routine maintenance and minor repairs up to a specified dollar amount. If something significant breaks or the system needs to be replaced, that’s the landlord’s responsibility. It’s a middle-ground option that works well when written clearly into the lease.
4. Shared Responsibility Between Landlord and Tenant
Sometimes, landlords and tenants split the load. You might cover maintenance and repairs, while the landlord agrees to handle replacements or anything over a certain cost. It’s a flexible setup, but ensure the details are clearly outlined in writing.
Pro Tip: HVAC responsibility can be a great point of negotiation when reviewing a lease, especially for new tenants. And before you sign, it’s worth having a commercial real estate attorney look it over. A little legal guidance now could save you a lot of money (and stress) later.
Don’t Overlook the HVAC Clause in Your Commercial Lease
Your HVAC clause might not be thrilling reading, but it’s one of the most critical parts of your commercial lease. Whether you’re already in a space or shopping for a new one, knowing who handles maintenance, repairs, and replacements can save you from major headaches — and big bills — down the road.
Need help navigating your HVAC responsibilities? Talk to your property manager, connect with a trusted HVAC provider, or have a commercial real estate attorney review your lease. A little clarity now can save you thousands later.
