Description of Improvements

The landlord and tenant should state clearly whether the tenant is accepting the premises "as is" or if there will be improvements to the premises. If improvements are going to be made, the lease should state who will pay for them.

If the landlord and tenant will split the cost, the question is who pays what portion and how. For example, the landlord may write a check to the tenant and require that those funds be used for improvements. However, the landlord will not contribute more than that amount. In some leases, it is reversed.

Regardless of who pays, the lease must be clear. Close attention to how improvements are paid for is absolutely necessary.

Finally, it is very wise to attach to the lease as an exhibit the plans for construction. In a lease where the landlord will pay for and complete the improvements, the lease should state:

Landlord, at its sole cost and expense, shall construct and install in the Premises, the Improvements provided in, and in accordance with the terms of Exhibit _____ (including all schedules thereto), attached hereto.