Landlord HVAC Repair Clause

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    Landlord HVAC Repair Clause

    Our company is a startup in Birmingham, AL in it's second year of business, though we are more than a year from making money. The landlord is a large corporation that owns very large amounts of premier commercial property.

    We rented one of their properties in November 2018, fixed up the place by paining, adding carpet, and carpentry, then moved in late Jan 2019. We quickly realized the heater and AC did not work and that we would be responsible for its repair since the contract has a clause that we are responsible for all the repairs to the HVAC. After an inspection by a professional, the repair costs could be $9k and replacement would be $14k. For a startup that is a large amount of money, almost a years worth of rent. We have a 3 year lease @ $2,500/month.

    We were never told the HVAC was in total disrepair, and when asked the landlord said they told us it was not running. I was leading the talks and that would have been a major red flag, since we already unhappy about needing to paint and replace carpet before move-in. We suspect the company was acting in bad faith so that an unsuspecting tenant would buy them a new HVAC. We also suspect the previous tenant went into bankruptcy due to not being able to fix the unit.

    Money is so tight we cannot afford to fix the HVAC and cannot work from the space.

    What options do we have for getting the landlord to cover the costs of a new unit or leaving the space without paying the 60% of rent clause if we terminate our lease early?

    Thanks for your feedback!

    #2
    The lease your company signed will determine your rights, are you in the USA ?

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