Who is Responsible for Vehicle Damage if a Parking Lot Has Been Poorly Maintained?

Who is Responsible for Vehicle Damage if a Parking Lot Has Been Poorly Maintained?

Keeping a parking lot well-maintained might not seem like it needs to be a top priority for management companies or landlords. But did you know that they could be held liable for vehicle damage that occurs on their property due to a poorly maintained parking lot?

Legal liability extends beyond the front door of an office building or commercial shopping area, and failing to keep parking lots safe can have serious repercussions.

What Constitutes a Poorly Maintained Parking Lot?

Parking lots must always be safe to navigate, whether it’s on foot, in a car, or when using assistive devices like wheelchairs or walkers. Potholes, uneven pavement, cracks in the walkways, and even faded line markings can all lead to situations where a person or their vehicle could be injured or damaged.

For example, small cracks might not seem like a big problem. However, with fluctuating temperatures and continual traffic, these small fractures can quickly become dangerous potholes. If a car were to hit one of these potholes and wind up with a flat tire, alignment issues, or other damage, the driver could go after the property owner for failing to maintain their parking lot and implement repairs.

Who Oversees Maintaining Commercial Parking Lots?

The majority of businesses rent or lease their commercial spaces from large property management companies, and in these cases, it’s the management companies who are responsible for everything related to building and property maintenance—including timely parking lot repair. While management companies are not often physically present at all of their properties, they do have to regularly inspect them. As soon as they are made aware of a deficiency, it becomes their responsibility to fix it.

Other types of lease agreements may assign maintenance obligations differently. Some leases transfer responsibility to the tenants, while others outline shared obligations. However, while the responsible party can vary, the need to maintain a safe parking lot for vehicle and foot traffic remains a consistent legal and practical priority. Failure to address maintenance issues promptly can lead to safety hazards, liability issues, and reputational harm for businesses operating on the property.

Legal Obligations of Property Owners

The terms of a specific lease or rental agreement may determine who is responsible for maintaining common areas such as parking lots.

Property Owner, Landlord, or Management Company

In most cases, it is the property owner, landlord, or management company who takes on building and property maintenance obligations. Where parking lots are concerned this includes parking lot repairs, resurfacing, line painting, and snow removal.

The owner, landlord or property management company also assumes responsibility for damage done to vehicles as a result of parking lot repair negligence.

Tenant Responsibility (Triple Net Lease)

In cases where a triple net lease is in place, it is the building tenants who become responsible for maintaining the parking lot. Their obligations cover the same areas as landlords or property management companies, including repairs, maintenance, and snow removal. Financial responsibility for vehicle damage under a triple net lease typically falls on the tenants who are responsible for parking lot repair.

Shared Responsibility

Some types of lease agreements may outline a specific cost-sharing arrangement where tenants contribute a proportionate amount towards parking lot maintenance through common area maintenance (CAM) fees. If there is emergency parking lot repair work that needs to be completed, the costs may be split among tenants based on the terms outlined in the lease, or the landlord may cover the upfront expense and recover the costs through adjustments to CAM fees.

Liability for vehicle damage due to poor maintenance will depend on the specific terms of the lease agreement and which party failed to uphold the contract.

Make Parking Lot Maintenance a Priority

At the end of the day, keeping a parking lot helps to keep the employees, tenants, and clients who use a commercial space safe. It’s a small investment that can help avoid costly accidents!