The contract specifies quite clearly what the terms of returning the unit to the lessor are, while often the divergence of interpretations of the parties can be significant, which leads to unnecessary disputes and can generate costs.

“The Lessee shall hand over the Unit to the Lessor in such condition and with such equipment, devices and other items as the Lessee’s obligations set forth in this Lease, i.e. in the condition corresponding to that on the date of signing the handover protocol (…) taking into account its normal wear and tear. In particular, the Lessee shall remove from the Unit all its property and its own equipment, goods and other items.”

The cost of restoring a unit and thus returning the space may be relevant to the viability of moving to a new location or staying in the current building. The risk of the emergence of costs associated with the return of leased space may discourage a tenant from relocating. In practice, the contract takes into account “normal wear and tear.” Another important and potentially cost-intensive issue is determining which improvements made by the tenant or by the landlord for the tenant are to be dismantled by the tenant and which may remain after the lease space is returned.

What is “normal wear and tear”?

At the stage of signing the contract, it may seem that the provision on normal wear and tear protects the interests of the parties, while a free interpretation of this provision, shows that the understanding of this provision is sometimes different. It is necessary to define precisely what wear and tear is acceptable, so that dirt, stains or dents, abrasions, scratches and losses can be recognized by the landlord as wear and tear resulting from normal use of the hall and office.

Audit and pricing.

In a situation where the interests of the tenant and the landlord diverge, the appointment of an independent expert for a surface audit can be crucial. An auditor is not only able to verify the level of wear and tear of such a surface, but will also assess what elements are suitable for replacement or renovation.

A good example would be working with a tenant for whom a move was a necessity. The dispersion of space was limiting him operationally, and the level of adjustments at the current landlord was too low. Thanks to an audit by an independent advisor, the tenant revised its cost level and negotiated an additional contribution to cover the cost of moving to a new location.

Awareness of the situation, forethought before entering the return of the area with the support of an experienced advisor can guard against unwanted costs.