Is Accepting Leased Premises From Your Landlord an Occupancy Permit?
By Bill Mears
Well, of course not—but for some tenants, it may seem so! In their recent article “Tenant’s Acceptance of Leased Premises: May The Tenant Always Beware”, authors Jim Hochman and David Lieberman point out five issues that tenants should consider before accepting a space. As they note, most landlords include in their leases a clause that absolves them of responsibility once the tenant takes possession.
Hochman and Lieberman advocate a number of issues to consider as the tenant chooses a date to move in, most of which revolve around any tenant improvements that a landlord has agreed to make. Tenants should also undertake a prudent independent inspection of the premises, regardless of any build-out—is that furnace truly in good shape or is it on its last legs?
What’s good for the goose is good for the gander, and landlords should embrace close scrutiny of their space and promised improvements. A happy, satisfied tenant tends to be a long-term one.
At the end of the article, as Hochman and Lieberman note, a deal isn’t done until all work is completed and the tenant is satisfied with the quality of the work.