§ 10.02 Quality of Service

• Jurisdiction: United States
• Publication year: 2022

§ 10.02 Quality of Service

Repairs and maintenance, like all other services or benefits in an office lease, raise issues of whether they will be provided to the tenant "as of right," how extensively available the service will be and what will be the quality or level of the service? Quality seems to be the most overlooked area in a lease. If a tenant expects a building to be operated in a first class manner because that is the appearance perceived when the tenant visited the building to access it as a candidate for leasing, the tenant must specify the quality level expected for repairs and maintenance and require that quality level to be maintained throughout the term of the lease.

Many buildings go through various life cycles, from fine maintenance to a slump in services. When a building changes hands, the first thing a new owner often does is raise the rents and lower the quality of service in order to cut costs and increase profits. Unless a tenant protects itself from changes in quality or levels of service or quality of workmanship with respect to repairs, the tenant may find itself in a very difficult position with shoddy workmanship, poor quality services and no remedy.

Cleaning and air conditioning capability of building systems are particular sources of frequent irritation. Office leases of any magnitude generally have schedules or riders of specifications determining the frequency and quality of cleaning and the performance level of operation of the air conditioning and heating equipment. Specifications should also be included for quality and quantity of electricity and water delivered to the premises and the respective obligations of the parties, usually the landlord in the typical gross or modified gross office lease, to maintain the systems providing the services. Quality is a very relative and subjective thing. If the tenant has a particular need, that need should be specified in the lease or the tenant will pay more later in the event of a dispute.

The notion of a "first class building" or the concept of "first class repairs" or a "first class standard" runs contrary to the common law view of an owner's limited repair obligation and the tenant's lot to take the premises "as is." While parties may contract for such standards, the courts are only beginning to define what "first class" constitutes. The American Bar Association is examining the topic closely¹ and...