Mike and Serena were excited to start a new business venture after Serena finished a chocolate making course. They entered into a commercial lease for a small local shop and undertook quite substantial fit out works which included putting a commercial kitchen in the back and a counter in the shop front from which to sell Serena’s beautiful handmade chocolates.

Business was going well but once summer started Mike and Serena noticed the inside of their shop was getting very hot. The heat was causing problems with the chocolates melting and their stock was being damaged from the high temperatures. Mike and Serena approached their Landlord as they believed the air-conditioning was ineffective and not cooling the premises to an adequate temperature causing the chocolates to be ruined. The Landlord refused to do anything to help and advised Mike and Serena that it was their responsibility as Tenant to repair and maintain the air-conditioning to their own requirements. The Landlord also told Mike and Serena that if they wanted them to arrange for the air-conditioning to be repaired, they would send an invoice to them to recover the repair costs.

The ineffective air-conditioning is a significant issue for Mike and Serena and the damage to stock is a major loss for their business. Because of the amount of money Mike and Serena spent undertaking fit out works and the ongoing cost of losing stock, Mike and Serena’s financial position has become dire and they cannot afford to pay for the air-conditioning to be repaired. If Mike and Serena cannot find an appropriate solution they will have no option but to close their beloved chocolate shop.

Originally when Mike and Serena signed the lease they decided the cost of paying for a solicitor to review the document was too expensive, especially when they had to pay to fit out the new shop. They have now decided they need to consult with a solicitor as they do not really understand their obligations as Tenant under the lease.

This scenario outlines why it is important to seek legal advice before signing a commercial lease. The responsibilities of both landlord and tenant to maintain and repair the premises depends on the specific terms of the lease. A solicitor can help explain the terms and review the lease to ensure it incorporates appropriate conditions for the type of premises being leased.