Is it possible to make repairs / alterations in the rented premises?

For many businesses, renting commercial real estate is much more profitable and convenient than buying. This applies not only to small businesses renting small LFAs (shopping pavilions and kiosks), but also to large companies that need premises for a warehouse, offices or shops. This trend is common in many large cities (including Kharkov) and makes doing business much easier.


The relationship between the owner of commercial premises and the tenant is determined by the contract, which sets out the rights and obligations of each of the parties. One of the points of interest to many businessmen is the distribution of payments for the maintenance of the premises between the parties. In particular, this may apply to repair work. Most often, the tenant takes care of the regular minor work, and the landlord finances the major repairs. However, it often happens that entrepreneurs want to make repairs or even redevelopment at their own discretion, let’s see if this is possible.


From a legal point of view, the parties have the right to independently determine who exactly will be engaged in the repair work and do not exclude the possibility for the lessor to take on these responsibilities. In this case, this must be specified in the contract, and the tenant himself must agree with the owner of the commercial real estate all the work and their cost. Quite often, landlords add a clause stating that only a contractor accredited by the owner can be used for this. In some cases, funds spent on repairs can be counted towards the rental fee, but this clause must be spelled out in the contract.


Often, the agreement also contains a clause obliging the tenant to return the premises in their original form at the end of the lease term, which will undoubtedly lead to additional financial costs. For such cases, experts recommend recording the state of the premises in the act of transfer and acceptance in order to avoid various difficulties and protect the interests of both parties.