Who Pays for HVAC Repairs in an NJ Commercial Lease?

Commercial HVAC issues are diverse. Some customers are worried about HVAC replacement, while others get frustrated by frequent minor issues. Many business owners get stuck on who will pay for those HVAC repairs. We have even seen many tenants and facility owners arguing on this single issue. The matter is very simple, but if these things are not documented in the agreement, they can be complex.

In this blog, we will help you understand who actually pays for HVAC repairs in a commercial setup.

1. For Minor Repairs

Usually, the tenant himself handles the minor HVAC repairs that need a DIY or just a few minutes and minor service fees. It includes both issues that are directly related to your HVAC and some associated issues. The associated issues take the form of plumbing leaks, electrical repair, or fixing a small issue with the HVAC ducts. 

Here is a comprehensive list of small HVAC problems that you expect to fix yourself when having a commercial office or store under lease.

• Replacing air filters.
• Changing thermostat batteries.
• Resetting tripped breakers
• Replacing blown fuses tied to the HVAC unit.
• Cleaning dust, debris, or minor blockages around vents and registers.
• Clearing a clogged condensate drain line or drain pan overflow.
• Tightening loose vents, grilles, or access panels.
• Replacing worn fan belts or minor exposed components, if allowed under the lease.

2. For Major Repairs

The more complex or internal HVAC repairs are usually the responsibility of landlords. This is because the landlord is responsible for maintaining the facility in the same condition as it was when handed over to the tenant. If there were a fully functional HVAC system when you took control of the property, and after some time, the property got some damage, the landlord will fix it for you. The range for minor and major repairs is, however, well documented in the lease agreement.

The following is a comprehensive list of major HVAC repairs that are usually up to the landlord.

• Repairing or replacing the compressor.
• Fixing or replacing the condenser unit.
• Repairing or replacing the evaporator coil.
• Replacing the air handler or furnace.
• Fixing major refrigerant leaks.
• Recharging refrigerant after a system failure caused by equipment issues.
• Repairing or replacing the blower motor.
• Fixing damaged control boards, relays, or internal wiring.

3. For HVAC Maintenance

The landlords usually take the responsibility of the scheduled HVAC maintenance along with the other maintenance, such as plumbing and electrical. The duration and frequency of the maintenance are usually listed in the lease document. It is usually a biannual maintenance in which the contractors compensate for the reagents, fix minor issues, and boost efficiency back to normal.

The following are some maintenance steps that are usually covered.

• Inspecting the HVAC unit for visible wear, leaks, or damage.
• Cleaning or replacing air filters.
• Checking refrigerant levels and topping them off if necessary.
• Cleaning evaporator and condenser coils.
• Inspecting belts, motors, fans, and other moving parts.
• Lubricating components where required.
• Testing thermostats and control systems.
• Clearing condensate drains and checking for blockages.
• Inspecting ductwork for leaks, loose connections, or dust buildup.
• Checking electrical connections and tightening them if needed.

Exceptions May Apply

These details are just what we have observed so far. There is always room for exceptions. For example, there are some scenarios in which the tenant themselves handles everything. From a single nut and bolt replacement to complex AC, furnace, or heat pump repairs, he himself pays for everything. Your official lease document usually includes the details of these things. Read it and update it if some terms and conditions are unclear to you.

Contact Lehigh HVAC for reliable and affordable HVAC services anywhere in New Jersey.