When the Basement Floods: Landlord Relationships 101

Sep 21

What I've learned about getting repairs done without burning the relationship

In 12 years of running Work Heights, I've built eight coworking spaces in Brooklyn. I own one building. Every other location is leased.

That means a big part of my job is something no one teaches you when you start a business: working with landlords.

Here's a sample of what we've dealt with:

Basements that flood, in several locations, each more than once
An HVAC system that broke down on the hottest day of the year
Rats invading our backyards
Neighbors throwing water at performers during live events in our backyard
Leaks coming from upstairs tenants
A landlord deciding to start major construction directly above us

Through all of it, I've learned how to get repairs done while keeping the relationship intact. Here's what works.

A lease is a long relationship

When you sign a commercial lease, you're not just renting space. You're entering a working relationship that will last for the entire term, often many years.

That means respect matters. So does a clear understanding of roles. As a general rule, the landlord is responsible for the exterior and the shell of the building. If there's a leak from the roof or water coming in from outside, that's usually on them. Everything inside is on the tenant.

When both sides understand that division, most problems get solved quickly. When it's fuzzy, that's where the friction starts.

Water always wins

There's a saying in building maintenance: water always wins. In my experience, it's true.

Every building will eventually have a water problem. Roofs leak. Pipes burst. Heavy rain finds its way into basements. So before you sign anything, be crystal clear about who is responsible for water damage, leaks, roofs, and flooding.

Even with clear terms, things can get complicated. At one of our locations, the basement floods during heavy rain. We notified the landlord, and now, every time there's a flood warning, the landlord notifies us, as if it's our job to protect the basement. Keeping water out of the building is the landlord's responsibility. Situations like that are exactly why the lease language matters so much.

Read your lease cover to cover. Yourself.

This is the most important advice I can give.

A lot of people leave lease review entirely to their lawyers. Legal advice is always a good idea, but you should also read every page yourself.

If you hit a clause written in dense legal language you don't understand, push back. Redline it. Ask, "Can you explain what this means?" or simply ask them to remove it.

I've handled a lot of my own lease negotiations this way. Many landlords are working from template leases they don't fully understand themselves. I've had plenty of clauses removed just by asking. Reading every lease myself means I go in with my eyes wide open.

Sometimes a landlord won't take on the responsibility you want. That's fine. At least you know exactly what your own responsibility is.

Use the lease as the tool it is

I prefer to keep the peace. But more than once, when a landlord has asked me to pay for something or take care of something, I've simply quoted the lease back to them.

Sometimes landlords are trying to shift costs onto you. Other times they've just forgotten what the lease says. Either way, if the lease clearly assigns responsibility, a calm reminder usually handles it.

Document everything

For everyday issues, we take photos and videos. For bigger problems, you need more: written reports, timestamps, and sometimes certified letters when you aren't getting a response.

Check your lease for notice requirements, too. Some leases specify exactly how you must notify the landlord. If you don't follow that process, they may not be obligated to act.

Sometimes, just fix it

Our responsibility is to our members. When something breaks, they need it fixed now, not whenever a landlord gets around to it.

So we often handle repairs ourselves. Landlords will usually credit back legitimate expenses, but even when that takes time, it's often worth paying to get the problem solved quickly.

The hardest landlords to work with aren't the ones who disagree with you. They're the ones who get in the way of progress: slow to respond, slow to approve, slow to act. When you're relying on someone else and they won't move, that's the most frustrating position to be in.

Give landlords some grace

I own the building where Work Heights began, which makes me a landlord too.

That experience changed my perspective. Owning a building is not passive income. That's a myth. Buildings break constantly. Systems need repairs, cleaning, and ongoing maintenance. I'm doing that work for my own building all the time.

So I know landlords aren't just cashing checks and walking away. That understanding lets me extend a fair amount of grace. But the lease is always the backstop.

Build the relationship before something breaks

Communication is a two-way street. I want my landlords to keep me informed, and I try to do the same for them. I keep things positive, open, and professional.

Those relationships vary. One landlord works entirely through a management company, and I've never met him. But most of my landlords I know directly, and one has become a genuine friend. We go to the sauna together every couple of months.

That friendship didn't start with anything special. It came from years of reliable, respectful communication.

One clause every new business owner should ask for

If you're signing a long-term commercial lease in New York, ask for a good guy clause.

It lets a tenant exit the lease without owing the entire remaining term, typically by giving notice and paying rent through the date they hand back the keys. If your business doesn't work out, you won't be stuck paying for years on a space you've already left.

If you're a new business owner with a dream you believe in but can't guarantee, that clause is your get-out-of-jail-free card.