Expert explanation

A warehouse lease is governed by the general provisions on leasing non-residential premises. The key issue is the division of liability between landlord and tenant:

• Landlord is responsible for ensuring the premises are fit for use and suitable for the agreed purpose. They are liable for damage caused by defects in the premises (e.g., faulty wiring leading to a fire).

• Tenant is liable for damage caused to the premises or equipment by themselves or by persons they allow access.

• As for stored goods, the tenant is generally liable unless the damage was demonstrably caused by a defect in the premises or by the landlord’s fault.

• Insurance: The landlord’s property insurance usually covers only the building structure, not the tenant’s goods. The tenant should arrange their own insurance for stock and equipment.

• Damage caused by a third party (theft, vandalism) is handled depending on the circumstances – usually from the tenant’s insurance, unless it can be shown that the landlord neglected security.

Main risks and common mistakes

• Lack of insurance – tenants assume the building insurance covers their property, which it does not.

• Unclear liability clauses – without a clear division of responsibilities, disputes can be lengthy.

• No documentation of the premises’ condition – makes it hard to prove whether the damage was caused by the tenant or existed beforehand.

Step-by-step procedure

For tenants:

1. Before signing the lease, find out exactly what the landlord’s insurance covers.

2. Arrange your own insurance for stock and equipment.

3. Insist on a written agreement defining liability for damage.

4. Document the condition of the premises at handover.

For landlords:

1. Have building insurance in place, including liability from ownership.

2. Clearly set the tenant’s insurance and maintenance obligations in the lease.

3. Regularly inspect the premises and security systems.

Real-life example

A warehouse tenant suffered CZK 600,000 in losses after a break-in through unsecured doors. The landlord claimed security was the tenant’s responsibility. As the lease did not address the issue and the tenant had no insurance, the tenant bore the entire loss.

Why be cautious with DIY contracts

Template leases often fail to address which party should hold what insurance and how damage claims will be handled. The result is that both parties only discover after an incident that liability and coverage have not been clearly set.

You might be thinking…

“If I rent space in a warehouse, surely the landlord has it insured.”
Yes – but usually only the building, not your property inside.

Lawyer’s recommendation – checklist

• Put in writing who is liable for damage to both the premises and stored goods.

• Check what the landlord’s insurance covers and add your own.

• Document the condition of the premises at handover.

• Set a clear process for handling damage claims.

FAQ

Who is liable for damage to stored goods?
Generally, the tenant, unless the damage was caused by a defect in the premises or by the landlord.

Is insurance mandatory?
The law does not require it, but the lease may, and it is strongly recommended.

Who deals with damage caused by a third party?
Depends on the circumstances – usually the tenant’s insurance, unless landlord negligence can be proven.