Lack due to reforms

In lease contracts for premises or industrial warehouses, it is common for the tenant to carry out some adaptation works to the premises according to their needs. However, if the works are of a certain entity, it is usually agreed that at the end of the contract they will benefit the premises.

It is also common to agree that, for a few months, the tenant will not pay the rent (precisely because they will be covering some works that will later benefit the premises). In these cases:

• There is a direct relationship between the landlord's waiver of collecting a certain number of monthly payments and the tenant's obligation to carry out the agreed works.
• Therefore, in case of non-compliance, the owner may choose between being paid the rent not collected or demanding the execution of the works under the agreed terms, without prejudice, in both cases, to the compensation that corresponds to them for the damages they can prove.

For these purposes, the lease contract must indicate, at least, the deadline for the execution of the works, the necessary licenses, the budget for the refurbishment, the quality report, and the plans for the final result.

At the end of the contract, the tenant cannot request additional compensation for the cost of the works carried out, as these will benefit the property.

In any case, it must be taken into account that:

• If the tenant does not carry out the works within the lack period, the owner may choose between demanding their execution, as agreed, or demanding the full payment of the unpaid rents. If after the notification the tenant still does not comply, the owner may terminate the contract (and continue to claim the payment of the rents).
• The owner will have the same options if the works carried out exceed or differ from those authorized, without prejudice to their right to demand, at the end of the contract, that they benefit the property, without the tenant being able to claim any compensation.

Technical supplement

MARGINALS MEMENTO

• Real Estate Memento,marginal 10030.

• If you are not a subscriber to the Real Estate Memento, clickhere  to access the referenced marginals in PDF format.

LEFEBVRE Articles

Note: The LEFEBVRE articles are based on the current regulations at the time of their publication.

• ArticleDeficiency in exchange for works, published in Notes & Tips You and Your Company on July 16, 2025. Clickhere to access its content.
• If you are not a subscriber of Notes & Tips You and Your Company, clickhere  to access the referenced article in PDF format.