Common areas: Overview, definition, and example
What are common areas?
Common areas refer to shared spaces in a building or property that are accessible to multiple tenants or occupants. These areas include hallways, lobbies, elevators, parking lots, restrooms, and recreational facilities in commercial or residential properties. Landlords or property managers are typically responsible for maintaining and managing common areas, with costs often passed on to tenants through common area maintenance (CAM) fees.
For example, in a shopping mall, the walkways, food court, and restrooms are considered common areas that all store tenants and customers can use.
Why are common areas important?
Common areas are important because they enhance the functionality, safety, and appeal of a property. Well-maintained shared spaces improve tenant satisfaction and contribute to a positive environment for businesses, employees, and customers.
For tenants, understanding their rights and responsibilities related to common areas—including usage rules, maintenance costs, and liability—can help prevent disputes and unexpected expenses. For landlords, proper management of common areas helps preserve property value and attract quality tenants.
Understanding common areas through an example
Imagine an office building with multiple businesses leasing individual suites. The lobby, restrooms, and parking garage are common areas shared by all tenants. The landlord maintains these spaces and charges tenants a proportional share of maintenance costs through CAM fees, which cover cleaning, repairs, and security.
In another example, a residential apartment complex includes a shared gym, pool, and clubhouse. While these are common areas available to all residents, the lease agreement may outline specific rules for usage, such as restricted hours or additional fees for certain amenities.
An example of a common areas clause
Here’s how a common areas clause might appear in a lease agreement:
“Tenant shall have the non-exclusive right to use the Common Areas of the Property, subject to the Landlord’s management and reasonable rules and regulations. Tenant agrees to pay its share of common area maintenance (CAM) expenses as outlined in this Agreement.”
Conclusion
Common areas are shared spaces in a property that tenants and occupants use collectively, such as hallways, parking lots, and recreational facilities. They play a key role in maintaining a functional and attractive environment, with costs and responsibilities typically outlined in lease agreements. Understanding common area usage and expenses can help tenants and landlords manage expectations and avoid disputes.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.