Air-conditioning, R22 and your office space

R22 is a gas used in Air-conditioning and other appliance which was banned in 2014 from all new AC equipment, due to its detrimental effects on the Ozone layer. From 2015, it is illegal to maintain existing AC equipment which used R22 gas. What this means for tenants is when buying into a 5 year lease (which is the industry standard in this market) you must take into consideration who will be responsible for replacing the AC units if they break. 

In a multi-let building, the service charge will often cover maintenance of services like AC units. However, it is not always the case so it is important to request to see both previous and purposed service charge budgets. This being said, if the cost is more than budgeted for landlord will often try to pass it onto the tenants which is why service charge caps are so important when taking on office space which is not in brand new refurbished condition. 

Rhodri Mason, Associate Director at Morgan Pryce says “It is especially important when taking a self-contained unit to get the Machines and Equipment checked as you could end up being responsible to replace the AC if it breaks and is R22 thus cannot be repaired.”

It is important to discuss all obligations at the beginning of a lease to avoid any liability during your time as a tenant. 

This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.