Who Pays for Commercial Roof Repairs Under a Lease?

A commercial lease sets out in writing who looks after each part of the building. The clause that matters is the repairing covenant, and it can differ sharply between a whole warehouse let to one tenant and a unit on an estate. We are roofers, not solicitors, so read this as general information. Check the exact wording of your own lease, and ask a solicitor or a chartered surveyor if the clause is unclear.

Look for three things: who must repair the roof structure, who must repair the covering on top of it, and whether the lease lists the roof among the parts the landlord keeps. A plan attached to the lease often shows which parts are let and which are retained. Once you know which party holds the obligation, ask them in writing to deal with a leak, and keep dated photos, because the date a problem was first reported can matter later. Our commercial roofing survey can supply the photographs and a written account of the roof's condition, which is useful evidence for either side.

A full repairing and insuring lease puts the cost of repairs, and of insuring the building, on the tenant. Where a tenant takes a whole building on those terms, the roof is generally the tenant's responsibility to keep in repair, though some leases carve out the structure or limit the obligation by a schedule of condition recorded at the start.

On a multi-let estate the landlord generally holds on to the roof and passes the bill on through the service charge, split by a formula written into each lease. Some leases cap what can be recovered, or require the landlord to consult before major works, so look for any such conditions. It also helps to check whether a sinking fund exists, since that money may already be set aside for a roof. Tenants may then be asked to contribute to a re-roof they did not choose. Service charge accounts should be open to inspection, so ask to see the quotes behind a demand. When a lease is coming to an end, the question changes to what is owed on leaving, which our page on a roof dilapidations claim deals with.

Repairing a roof means putting right a defect so it works as it did. Improving it means making it better than it was, for example by changing the covering for a different, longer-lasting system or by adding insulation. Many leases oblige a tenant to repair but not to improve, so the label on the work can decide who pays. Landlords may say a re-roof is a repair; tenants may say it is an upgrade.

Often the roof is old enough that patching is no longer sensible, and a replacement in a similar style is the only way to stop the leaks. Whether that counts as repair depends on the lease and the facts, and a surveyor or solicitor should advise. A fair contractor describes the options without taking sides, and says plainly when a patch has run its course. Keep in mind that a repair which fixes the cause may cost more now and less over the lease than a string of small patches, a point that matters to whoever pays. A coating versus replacement comparison, with photographs, gives both sides the same facts to work from, and that often settles the argument sooner.

Water damage will not wait for the argument to finish. Tell the landlord or managing agent in writing, photograph the leak and any stock or equipment affected, and ask your own insurer what notice it requires. Make the area safe, move goods and keep receipts for any temporary protection. A leaking roof can be made safe first, then surveyed, and the repair priced as one total in writing.

Agree in writing who is instructing and paying before the work begins, and who will receive the invoice. Check whether the quote includes VAT and any access equipment, because a tenant, a landlord and a managing agent may treat VAT differently. If the work needs notice to a freeholder or lender, find that out first. Our page on a commercial roof condition survey explains the report you can pass to the other party, and a clear report keeps the discussion on facts. If the roof is shared with a neighbouring unit, say so, since the cause may sit on the other side of a party line and the cost may be shared too.