Before signing a hangar lease, thorough review prevents costly surprises and protects your interests. Take time to understand every provision—this document governs your aviation home for the lease term.
Essential Provisions to Examine
Rent and Payment Terms
- Base rent amount and payment due dates
- Additional charges (CAM, utilities, taxes)
- Late payment penalties and grace periods
- Acceptable payment methods
- Security deposit amount and return conditions
Rent Increase Provisions
- Fixed annual increases (percentages)
- CPI or index-based adjustments
- Market rate adjustments at renewal
- Caps on maximum increases
- Notice requirements before increases
Term and Renewal
Lease Length
- Initial term start and end dates
- Month-to-month conversion options
- Early termination provisions
- Required notice periods
Renewal Rights
- Automatic renewal terms
- Renewal rent determination
- Notice deadlines for renewal/non-renewal
- Priority over new applicants
Use and Restrictions
Permitted Uses
- Aircraft storage (type limitations?)
- Maintenance activities allowed
- Commercial activity restrictions
- Vehicle storage permissions
- Subletting and sharing rules
Prohibited Activities
- Living or sleeping on premises
- Hazardous material storage
- Manufacturing or business operations
- Structural modifications
Maintenance Responsibilities
Tenant Duties
- Interior cleaning and upkeep
- Minor repairs threshold
- Systems you maintain
- Restoration requirements at lease end
Landlord Responsibilities
- Structural maintenance
- Roof and exterior repairs
- Major systems (HVAC, electrical mains)
- Common areas and taxiways
Insurance Requirements
Coverage Mandates
- Liability minimum amounts
- Aircraft coverage requirements
- Additional insured naming
- Certificate submission deadlines
Verification
Confirm your current policies meet requirements before signing—coverage gaps could void the lease.
Access and Security
Your Access Rights
- 24-hour access confirmation
- Gate codes and key procedures
- Guest and vendor access rules
Landlord Access
- Notice requirements for entry
- Emergency access provisions
- Inspection rights and frequency
Termination Provisions
Your Exit Options
- Notice period required
- Early termination penalties
- Conditions permitting termination
- Deposit return procedures
Landlord’s Rights
- Default triggers and cure periods
- Eviction procedures
- Airport closure provisions
- Condemnation or sale clauses
Red Flags
Warning Signs
- Unlimited rent increase authority
- Personal guarantees extending beyond term
- Broad landlord liability waivers
- Vague maintenance obligations
- Automatic renewal without notice provisions
- Unreasonable insurance requirements
Negotiation Opportunities
Don’t assume leases are non-negotiable:
- Rent reductions for longer terms
- Caps on annual increases
- Tenant improvement allowances
- First right of refusal for adjacent space
- More favorable termination terms
Professional Review
For significant leases, consider:
- Attorney review of terms
- Comparison with similar local leases
- Input from experienced hangar tenants
Careful lease review protects your investment and ensures clear expectations throughout your tenancy.
