Maintenance of Commercial Properties and Offices in Kuwait

In the State of Kuwait, since the commencement of Decree Law No. 35 of 1978 on 16 August 1978, maintenance obligations for commercial properties are governed by unified rules that apply to both residential and commercial sectors. Negotiating "who pays to repair damages" in luxury office towers and shopping malls is a required part of the feasibility study. While the law establishes mandatory landlord responsibilities for necessary repairs, commercial custom often involves negotiating specific contractual terms for internal maintenance and service charges.

Legal DisclaimerThis guide provides general legal information. Lease laws can change. Always consult a licensed notary or lawyer in this region.

Structural Maintenance and Common Systems (Landlord's Task)

Under Article 8 of Decree Law No. 35/1978 and Article 581 of the Civil Code, the landlord (lessor) is mandatorily obligated to maintain the leased property to keep it in a condition fit for the purpose for which it was leased. This includes carrying out all repairs necessary for the preservation of the property, such as:

• Structural Integrity: Maintaining pillars, foundations, exterior walls to prevent rainwater leakage (Waterproofing), and the glass facades of the tower from the outside.
• Central AC and Elevators: Maintaining the central cooling (Chiller Plant) in continuous working condition for the floors, and servicing visitor elevators.
• Fire Fighting Systems (Civil Defense): Ensuring the total readiness of the building's fire extinguishing system to guarantee that commercial licenses for all companies in the tower are not suspended.

(Note: If the landlord fails to perform these necessary repairs after being notified, the tenant may obtain court permission to carry them out and deduct the costs from the rent pursuant to Article 8 of Law 35/1978).

Maintenance of Commercial Space (Tenant Company's Task)

Everything located within the spatial boundaries of the shop or company office falls under its custody to preserve and repair, specifically regarding minor maintenance.

• Rental Repairs: Under Article 9 of Decree Law No. 35/1978, the tenant is responsible for "rental repairs" (minor maintenance) established by custom, unless otherwise agreed in the contract.
• Operational Breakdown of Devices: Internal AC filters (FCU), the electrical network, and server room sockets for offices.
• Ventilation Systems for Restaurants: Restaurants in malls are obligated to maintain and empty exhausts and grease traps regularly to prevent the complex from filling with odors and breakdowns, for which the landlord may impose fines if contractually stipulated.
• Appearance and Glass: Maintaining automatic shop doors and advertising signboards installed by the tenant company in the corridor.

Operating Fees Fund (Service / CAM Charges)

In Kuwaiti commercial contracts, you will often find an addendum for Common Area Maintenance (CAM) or service charges. It is important to note that Kuwaiti law does not prescribe a specific percentage (such as 10-15%) for these charges.

Service charges are purely a matter of contractual negotiation and must be clearly defined in the lease addendum. While Article 8 allows for the recovery of specific operational costs if agreed upon, the law primarily views structural maintenance as a landlord expense. These charges typically cover the salaries of security guards, cleaning staff in common areas, and electricity consumption in corridors.

To ensure transparency, you can use specialized Landager modules for commercial leases, where the system not only demands the rent but automatically issues detailed invoices for operational charges shared by the companies without any effort, shielding the landlord from legal disputes in Kuwaiti courts.

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