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Who pays for HVAC, roof, and door repairs in a flex space lease?

By the ScaleUp principals — 90+ combined years in construction, industrial operations & finance Published September 17, 2026 4 min read
Rendering of the warehouse bay in a 2,000 SF unit at Rockwall Flex Park in Rockwall, Texas, showing metal panel walls, a utility sink, and a grade-level roll-up door

In most flex space leases the tenant repairs the HVAC, the doors, and everything inside its own unit, and the landlord repairs the roof, the structure, and the parking lot, then bills a share of that work back through CAM. Your lease sets the split, because Texas gives a business tenant far fewer repair rights than a residential renter. The question gets real the first August afternoon your unit blows warm air and you are standing there deciding who to call.

Who is responsible for repairs in a Texas commercial lease?

Your lease is, almost entirely. The repair duties people know from renting a house sit in Chapter 92 of the Texas Property Code, which covers residential tenancies, so none of it reaches a warehouse bay.

Commercial tenants get one protection from the courts. In Davidow v. Inwood North Professional Group (1988) the Texas Supreme Court held that a commercial landlord impliedly warrants the premises are suitable for the tenant's intended use and free of latent defects in facilities vital to that use. Then in Gym-N-I Playgrounds v. Snider (2007) the same court held a tenant can sign that warranty away with an "as is" clause, and plenty of commercial leases include one. So the repair section of the lease is the whole deal, and it is worth more of your reading time than the rent number.

How are repairs usually split between landlord and tenant?

The building envelope and the shared site go to the landlord, and the systems that serve only your unit go to you.

ItemWho handles itHow you pay
Roof, structure, exterior wallsLandlordRepairs often through CAM, replacement should be excluded
Parking lot, landscaping, site lightingLandlordYour pro-rata CAM share
HVAC serving your unit aloneTenantYour contractor, your invoice
Roll-up door, springs, openerTenantYour contractor, your invoice
Plumbing and electrical inside the unitTenantYour contractor, your invoice
Damage your crew or forklift causesTenantDirect, anywhere in the park

Every unit at Rockwall Flex Park gets its own HVAC system and its own 12x12 grade-level roll-up door, so both belong to one tenant and neither ends up in a shared bill. The landlord side of that table lands in your CAM estimate, which is explained in what a NNN lease actually covers.

Who pays when the HVAC needs replacing instead of repairing?

The lease has to answer that separately, because a clause that says the tenant "maintains and repairs" the HVAC can be read to mean the tenant buys the landlord a new system. A compressor that dies in year seven of a ten-year term is an asset the building keeps long after you are gone, and tenants sign that risk without noticing it.

Ask for one of three fixes, in this order: the landlord pays for replacement, or your HVAC spending is capped per year with the landlord covering anything above the cap, or the replacement cost is amortized over the equipment's useful life and you pay only for the months left on your term. Our Rockwall and McKinney leases run on NNN terms with annual escalations, and [[CONFIRM: ScaleUp lease position on HVAC replacement vs repair, and whether a tenant spending cap applies]].

Who pays for repairs in a brand-new building?

In a new building the first repairs usually belong to the contractor or the equipment manufacturer under warranty, so a tenant who calls a service company on their own can pay for work that was already covered. Warranty coverage runs from substantial completion or from the certificate of occupancy date, and it expires on a schedule nobody sends you.

Rockwall Flex Park delivers Summer 2027 and McKinney breaks ground in Q4 2026, so every first-generation tenant in both parks moves into equipment with live warranties. Get three things in writing before move-in: the start date and length of the warranty on the HVAC, roof, and doors, the installer's name and number for each, and a rule that warranty claims route through the landlord first. Manufacturers also condition coverage on service records, so a skipped filter change can turn a covered failure into your bill. What we deliver in each unit is set out in what a flex space comes with and who pays for finish-out, and the warranty terms on our Rockwall equipment are [[CONFIRM: HVAC, roof, and door warranty terms and who the tenant calls first]].

Does Texas charge sales tax on repair work for a warehouse?

Yes, and how the work is written up changes what you owe. The Texas Comptroller's bulletin on real property repair and remodeling makes the total amount charged for repairing, remodeling, or restoring nonresidential real property taxable, while scheduled, periodic work on property that is not broken counts as maintenance and carries no tax on the charge. Parts and materials are taxable either way.

Texas charges 6.25% state sales tax and local jurisdictions can add up to 2% for a combined 8.25%, according to the Comptroller's sales tax page. A quarterly service contract on a working unit is taxed more lightly than the emergency call after it fails, and it keeps the warranty paperwork clean at the same time.

What should the repair section of your lease say?

Six items, written into the lease rather than agreed on a walkthrough.

Those last two belong on the walkthrough with your flex space lease checklist.

On move-in day: photograph the roll-up door, the slab, and the HVAC data plate, and file the tonnage, model, and install date with your lease. Every repair argument after that starts from your record instead of memory.

FAQ

Is a commercial landlord in Texas required to fix the air conditioning?

Only if the lease says so. The repair duties in the Texas Property Code cover residential tenancies, so a commercial tenant's air conditioning repairs follow the lease, and flex, retail, and warehouse leases commonly put the unit's HVAC on the tenant.

Who pays for roof repairs in a NNN lease?

The landlord arranges roof repairs in a multi-tenant NNN lease and bills tenants a share of the cost through common area maintenance charges. Ask for a clause that keeps full roof replacement and other capital items out of those charges.

Is HVAC repair work taxable in Texas?

Repairing broken equipment on a nonresidential building is taxable on the total charge, and scheduled maintenance on equipment that is working is not taxable on the labor, according to the Texas Comptroller. Parts and materials are taxable either way.

Want the repair split in writing before you tour?

Tell us what you run and we will send the delivery condition and the maintenance terms for the unit size you need. See the Rockwall and McKinney units and what each park delivers.

Ask about a unit