Hangar lease agreement

[prkaye]

I have rented-out space in my hangar to other aircraft owners in past years but I have never bothered with formal written lease agreements. It's been recommended that I do this going forward. A few questions for hangar owners out there who have done this:

• Could you point me to sample agreements or general wording for such an agreement?
• Are these typically re-signed on an annual basis, or can they be made indeterminate?
• I am not providing winter maintenance or snow removal service or equipment, and so the agreement shoudl state that my tenant is responsble for this at his own risk. Is there special legal wording that I should use for such a clause? Is there a specific section in an agreement where this should go?
• I want to have a clause requireing the tenant to obtain insurance and idemnifying me for any losses to the tenant's aircraft or property while it is stored in the hangar. I've asked the tentant to get a subrogation clause in his aircraft insurance, but I'm not sure if his insurer will agree. I figure at least an idemnity clause in the lease agreement gives me some cover. Again, is there specific legal wording that should eb used? Example of what such a clause would look like in a typical lease agreement.

Please note that I am not asking anyone for specific legal advice. Just general thoughts or examples of wording that might appear in a typical hangar lease agreement.
Thanks!
Phil

 

[rick9mjn]

I have rented-out space in my hangar to other aircraft owners in past years but I have never bothered with formal written lease agreements. It's been recommended that I do this going forward. A few questions for hangar owners out there who have done this:

• Could you point me to sample agreements or general wording for such an agreement?
• Are these typically re-signed on an annual basis, or can they be made indeterminate?
• I am not providing winter maintenance or snow removal service or equipment, and so the agreement shoudl state that my tenant is responsble for this at his own risk. Is there special legal wording that I should use for such a clause? Is there a specific section in an agreement where this should go?
• I want to have a clause requireing the tenant to obtain insurance and idemnifying me for any losses to the tenant's aircraft or property while it is stored in the hangar. I've asked the tentant to get a subrogation clause in his aircraft insurance, but I'm not sure if his insurer will agree. I figure at least an idemnity clause in the lease agreement gives me some cover. Again, is there specific legal wording that should eb used? Example of what such a clause would look like in a typical lease agreement.

Please note that I am not asking anyone for specific legal advice. Just general thoughts or examples of wording that might appear in a typical hangar lease agreement.
Thanks!
Phil

 

[rick9mjn]

AOPA has paperwork for "airplane partnership", so check with then, they may have something for hangar renting.
/ good day

 

[JonJay]

Check out sample agreements from the MinI Storage industry. Those agreements pretty much indemnify the lessor for pretty much anything, if the roof leaks and destroys tenants property, too bad, they should have had their own insurance, stuff like that. My agreements for my tenants encourage self insurance and state multiple times there is none provided.
You can probably parse something out of those sample agreements.
Regardless, you will want to make sure you have liability coverage.
People will sue for almost anything and you could be in a position of defending yourself even with an agreement. This is why I have never considered leasing extra space I have had in my hangar. Not enough upside.

 

[DHeal]

Don't blame the messenger but: Have you checked with the owner of the airport as to any requirements they may have regarding sub-leasing hangar space on the airport? Even if you built/own the improvements (i.e., hangar) you may be bound by the airport owner's ground lease requirements. Just sayin'....

 

[FresnoR]

Couple thoughts,

1. If you can make it MTM, or 6-month terms with auto renewal, do that. If they become a problem it gives you a better chance to terminate the agreement
2. Make sure you have an "aviation purpose only" consistent with the airport rules. You want to make sure there is not an issue if they start storing junk and you get in trouble with the airport.
3. Related to above, perhaps you restrict any storage other that an aircraft. You don't want to have to deal with their personal unrelated storage needs.
4. Make sure there is an out if the airport Fire Department does any kind of "inspection" and finds something they don't like. You'll be stuck in the middle of it.
5. They need your written permission to make any changes to the hangar, i.e. modifications in lighting, electrical, floor epoxy, mounting things on the wall, etc
6. They are responsible for the annual fire extinguisher replacement, greasing hinges/rollers, or other mandatory mtx.

 

[rv6n6r]

Very good idea to have a written agreement. Handshake works until it doesn't, then it sucks (personal experience).
You do want to clearly define aviation use, and how much "extra" is okay. I helped craft the agreement with our city and it tries to address all that stuff, here's the allowed and prohibited uses part of our agreement. Some of the language is a little more restrictive than we'd like but regardless, it could be a starting point for that section of your agreement. And of course as FresnoR said above, it also has to conform to any overriding rules from your airport.