07 Nov 2016
Words David Burrough

The Motel Lease - Use of the Motel

The list of obligations on a Tenant will usually be lengthy and each Lease will contain slightly different obligations.  The obligations are usually a combination of what must be done and what must not be done.  Generally the Lease should oblige the Tenant to:

• keep the motel open for business each and every day;
• conduct their business in good faith, in a reputable manner and to the best of their ability;
• comply with all laws;
• take out and maintain all licences, permits and registrations required for the carrying on of the Tenant's business;
• maintain the roof guttering, waste pipes, drains, water supply, plumbing, conduits and other equipment or services in a clear and free flowing condition.  The Tenant will be responsible for employing licensed tradesmen to clear any blockages;
• have all grease traps serviced regularly;
• cause all waste, trash, refuse, food and other garbage to be removed daily outside of normal trading hours;
• comply with all laws and requirements of any authority relating to fire safety and comply with any requirements of the Landlord in respect of fire safety;
• only use advertisements or signs that are usual and comply with the law or the requirements of any authority.

The Lease should also oblige the Tenant to not:

• dispose of, alter, or change the business name without the consent of the Landlord;
• use the business name as a company name;
• do anything which is or becomes an annoyance, nuisance, grievance or disturbance to the Landlord or persons in the motel or occupiers or owners of any neighbouring premises;
• use any form of light, power or heat other than electric current.
• install or connect any electrical equipment in the motel that may overload the switchboards without the Landlord's prior consent;
• bring on or store in the motel any explosives, inflammable or corrosive fluids or chemicals.

One of the most important obligations on the part of the Tenant will be to ensure that a AAA Report is prepared each year.  The Lease should also require the Tenant to provide the Landlord with a copy of the AAA Report received and to comply with all requirements and recommendations contained in the AAA Report within a reasonable time (except for those requirements of a structural nature).  This obligation is tied into the repair and maintenance obligations of each party.  We will discuss in more detail next article the repair and maintenance obligations of both the Landlord and the Tenant.

The above obligations should be set out as clearly as possible and worded in plain English so that both the Landlord and the Tenant know exactly what the Tenant may and may not do.