In: Accounting
Why is it important for a landlord to provide in a real property lease agreement that the property shall be returned to the landlord in “good condition, ordinary wear and tear and obsolescence excepted,” rather than in “original condition?”
While giving a property on lease, it is reasonable that the property will be used by the lessee will use the property.
Thus, while the property is being used, ordinary wear and tear and obsolescence is obvious to occur. One cannot be expected to use a product in a way that there is no normal wear and tear.
Again, it cannot be expected that the property be returned in 'original condition' as it was at the time of commencement of lease, as obsolescence cannot be prevented by the user. It takes place with time.
Thus, it is important for a landlord to provide in a real property lease agreement that the property shall be returned to the landlord in “good condition, ordinary wear and tear and obsolescence excepted,” rather than in “original condition"