Maintenance of Commercial Properties and Offices in Kuwait

In the State of Kuwait, negotiating "who pays to repair damages" in luxury office towers and shopping Malls is an required part of the feasibility study for both companies and landlords. The Kuwaiti commercial custom leans towards exempting the landlord from the bulk of internal obligations, placing them on the shoulders of branch tenants, while also burdening them with the bills for central security and cleaning.

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Structural Maintenance and Common Systems (Landlord's Task)

Despite the strictness often found in commercial contracts, the landlord (real estate institution) remains legally and customarily responsible for keeping the complex or tower fit for commercial practice. This includes:

• 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: The Kuwaiti landlord often recovers the costs of this maintenance from companies in the form of periodic Service Charges).

Maintenance of Commercial Space (Tenant Company's Task)

Everything located within the spatial boundaries of the shop or company office falls under its complete custody to preserve, repair, and replace. This includes:

• 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 will heavily fine the tenant in Kuwait.
• 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 massive Kuwaiti commercial contracts, you will not find the term "rent" alone. Rather, there is an addendum that constitutes an additional burden paid by the tenant to cover Common Area Maintenance (CAM). The tenant company pays a share (amounting to roughly 10%-15% extra on the rent, proportional to its area from the complex) to cover the salaries of security guards in the mall, cleaning staff in internal streets, electricity consumption in corridors, and most of the structural maintenance performed by the landlord.

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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