Insist on Tenant’s Compliance with Recycling Program

If you have even one tenant in your building or center that refuses to follow your recycling program, it could cost you in fines and penalties. That's because many localities around the country are enacting tougher requirements for garbage and waste recycling. The Austin City Council passed a new ordinance that took effect in 2012, requiring commercial complexes, including large and small office buildings, to start offering recycling services on site. The New York City Council’s updated and expanded recycling laws, and strict requirements for commercial businesses and buildings that have their waste collected by a private recycler, are another example of this green trend.

The ability to set up an effective recycling program all boils down to what the lease says. For example, you're wrong if you think that the “compliance with laws” clause in your lease—the one that requires the tenant to follow all laws regarding its use and occupancy of the space—will force the tenant to comply with any trash recycling program you set up.

The best way to make the tenant follow any recycling program is to give yourself a general right in the lease to set up any mandatory program in your building or center that you believe, in your sole judgment, is in the best interests of the building or its tenants. Then say that this includes the right to set up a trash recycling program. If the tenant balks at this clause, arguing that you're giving yourself too broad a right, limit the right to only setting up a trash recycling program.

Next, say that the tenant must promptly comply with any obligations you set for the mandatory program. And make sure you instruct your janitorial service or property management staff to inspect trash collection sites to find out which tenants are recycling and which aren't, so you can enforce your program and avoid fines.

Not a subscriber? Click here for a free trial issue!