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Here is a call we get more often than you would think: a rooftop unit dies in a Hamilton plaza, we show up to fix it, and nobody on site knows who is paying, the landlord or the tenant.
I’m Jake from Alpine HVAC, and while we fix the unit either way, the answer to who pays was decided the day the lease was signed.
Here is how it usually breaks down.
What is the difference between lease types when it comes to HVAC? In a gross lease, the tenant pays one flat amount and the landlord covers operating costs, HVAC included. In net leases, and especially triple net leases, operating costs shift to the tenant, and routine HVAC maintenance and repairs usually land on the tenant’s side of the ledger.
Plenty of tenants only discover this when the first repair bill arrives. Government resources like the FedDev Ontario business lease guide note that HVAC is usually a landlord responsibility, but your lease overrides the usual, every time.
What should you look for in the HVAC clause itself? Three things. Who handles routine maintenance. Who pays for repairs, and whether there is a dollar cap that shifts big repairs to the landlord. And who pays for full replacement, which is a capital expense that most standard leases leave with the landlord unless the wording says otherwise.
Many commercial leases also require the tenant to keep a preventative maintenance contract on the HVAC and to produce service records on request, so if your lease has that clause, a maintenance contract is not optional; it’s needed for compliance.
What should each side actually do about this?
Tenants: before signing, get the HVAC system inspected the same way you would inspect a roof, because you may be inheriting responsibility for equipment nearing end of life.
Landlords: keep documented maintenance on shared systems, because well-kept records prevent disputes and support your position if one starts. Alpine works for both landlords and tenants across Hamilton, and our reports are written so either party can hand them to the other without translation.
Explore our full commercial HVAC services in Hamilton to see how we support both sides.
One caveat before you act on any of this: we are HVAC technicians, not lawyers. This article is general information about how leases commonly handle HVAC, not legal advice about yours. For disputes or lease negotiations, your lease document and a commercial leasing lawyer are the authorities. What we can do is inspect the equipment, document its condition, and give you the facts your lawyer will ask for.
Whether you are a tenant about to sign, a landlord drafting an HVAC clause, or either party staring at a dead rooftop unit, contact Alpine HVAC for an inspection and a clear condition report. Knowing the state of the equipment turns a lease argument into a lease conversation.
In most triple net leases, routine HVAC maintenance and repairs are the tenant’s responsibility, because operating costs shift to the tenant under that structure. The exact wording of your lease governs, so always check the HVAC clause.
Full HVAC replacement is a capital expense that usually stays with the landlord in standard commercial leases, though some leases shift it to the tenant. Because the dollar amounts are large, this clause is worth reading before signing, not after.
Many commercial leases require the tenant to hold a preventative maintenance contract on the HVAC system and to provide service records on request. Check your lease, and if the clause is there, a documented maintenance plan keeps you compliant.
Yes, you can and should get the HVAC inspected before signing a commercial lease, especially a net lease. An inspection tells you the age and condition of equipment you may become responsible for, which is negotiating information worth having.
If a lease is silent on HVAC, responsibility becomes a matter of interpretation, which is exactly how disputes start. A lawyer can advise on your position, and a documented condition report from a licensed contractor supports whichever side you are on.
