Can a Tenant Hire a Commercial Contractor?

If you want to do some work on a space you live or work in but you’re not the owner, you may be wondering, “Can a tenant hire a contractor?” It’s a good question, and you’re taking a solid first step by researching the answer.

Robert Hakes Construction specializes in both residential and commercial projects. We tackle everything from construction management to demolition, drywall, and more. We enjoy helping people bring their visions to life. But before we get started, here are a few things to know if you’re a tenant looking to hire your own contractor.

Check Your Lease

The first thing you should do is consult your lease. Most lease agreements outline who is responsible for repairs and renovations. Generally speaking, if something needs to be repaired, the landlord will hire a contractor to do the repair work. If the tenant is responsible for any type of repair work, it’s typically outlined in the lease terms. Be sure to carefully review the lease to understand your tenant rights and responsibilities.

If you have not yet signed a lease and know that you want to make improvements or alterations to the space, you may be able to negotiate a tenant improvement allowance. Even if you’ve already signed a lease, you should check to see if this provision is included.

A tenant improvement allowance is a sum of money the landlord gives to a tenant to make upgrades or renovations to a space. For example, the space may need to be converted or altered to meet the needs of a new business. A tenant improvement allowance gives the tenant the funds and opportunity to do that.

The terms of the tenant improvement allowance, such as who will hire the contractor and who will oversee the construction work, can vary by contract. Be sure to discuss the terms of the improvement allowance with your landlord in great detail. Before adding this provision to the lease, figure out who will be responsible for project delays or cost differentials. It’s also a good idea to have an attorney look over the contract before agreeing to any final terms.

Consult with Your Landlord

Once you check your lease, contact your landlord about your plans to hire a contractor. Even if your lease prohibits a tenant from hiring a contractor on their own, you can reach out to your landlord to see whether an exception may be possible. Explain what type of work you would like to have done and why you want to hire the contractor on your own.

If your landlord agrees to allow you to hire your own contractor, make sure to get their approval in writing. Once again, it’s a good idea to have an attorney review the final contract terms. If the lease already allows a tenant to hire a contractor, you should still communicate your plans to your landlord. This will get everyone on the same page and help you maintain a good relationship with one another.

For example, most leases guarantee a tenant’s right to quiet enjoyment. This means the tenant should be able to live or work in the building free from major distractions or disruptions. The landlord may need to be involved in coordinating the project timeline so it doesn’t interfere with the quiet enjoyment of other tenants. Therefore, you should keep your landlord updated on your plans and get written consent before proceeding with your project.

One thing that sets Robert Hakes Construction apart from other contractors is that we’re able to do the project work in phases with minimal disruption to occupied spaces. That means you and your neighbors can remain on-site during the construction process and continue with business as usual. We will do everything we can to make your project run as smoothly as possible.

Know Your Rights

Knowing your rights and responsibilities goes beyond simply understanding the terms of your lease. In some cases, a landlord may hire a contractor who is unlicensed or does faulty repair work. If that happens, you should be familiar with state law so that you can take the appropriate action.

Some states allow rent withholding, while others do not. If you live in a state that does not allow you to withhold rent, other options may include early termination of the lease or calling in state building inspectors to evaluate and address the problem.

If you’re uncertain of the law in your state or what your rights are, you can contact a local tenant advocacy group or other organization to help. The US Department of Housing and Urban Development provides a good resource for understanding tenant rights by state.

Protect Yourself

Keep in mind that your landlord is looking out for their own interests, which means you should advocate for yours as well. If you can negotiate with your landlord to hire your own contractor, be careful to limit your responsibility when it comes to anything beyond your own renovations and repairs.

For instance, you should check for any compliance clause within your lease. This clause will outline who is responsible for keeping the building up to code. You should also discuss liability with your landlord. For instance, if someone trips and falls in the area under construction, your contract should outline who is responsible for any damages.

Once you’ve worked out all the details and you’re ready to hire a contractor, give us a call. Whether you’re looking to do a major overhaul through a complete office buildout or simply make some minor improvements to help your space stand out, we’ll work quickly and efficiently to make it happen. So if you’re ready to take your space to the next level, we’re ready to help you dream it, build it, and showcase it to your clientele.