Aircraft Hangar Lease Agreement

AIRCRAFT HANGAR LEASE AGREEMENT

PARTIES

LESSOR (Airport/FBO/Owner):

Name: [________________________________]

Address: [________________________________]

City: [________________] State: [____] Zip: [__________]

Phone: [________________] Email: [________________________________]

Type: ☐ Airport Authority ☐ Municipality ☐ FBO ☐ Private Owner

Airport Name: [________________________________]

FAA Identifier: [________]

LESSEE (Tenant):

Name/Entity: [________________________________]

Address: [________________________________]

City: [________________] State: [____] Zip: [__________]

Phone: [________________] Email: [________________________________]

Type: ☐ Individual ☐ Corporation ☐ LLC ☐ Partnership ☐ Trust

Federal Tax ID / SSN: [________________________________]

Emergency Contact: [________________________________]

Emergency Phone: [________________________________]

PREMISES

Hangar Description

Hangar Number/Designation: [________________________________]

Hangar Type: ☐ T-Hangar ☐ Shade Hangar ☐ Box Hangar ☐ Corporate Hangar

Hangar Location: [________________________________]

Square Footage: [__________] sq. ft.

Door Dimensions: [____] ft. wide x [____] ft. high

Utilities Included:
☐ Electricity ☐ Water ☐ Heating ☐ Air Conditioning
☐ Compressed Air ☐ None included

Included Amenities:
☐ Restroom access ☐ Office space ☐ Parts storage
☐ Workbench ☐ Parking spaces: [____] ☐ Ramp access

AIRCRAFT TO BE STORED

Primary Aircraft:

Additional Aircraft (if permitted):

☐ Only aircraft listed above may be stored in the hangar
☐ Lessee may store substitute aircraft of similar or smaller size with notice

ARTICLE I - LEASE TERM

1.1 Initial Term

Commencement Date: [__/__/____]

Expiration Date: [__/__/____]

Initial Term: [____] month(s) / year(s)

1.2 Renewal

☐ Automatic Renewal: This Lease automatically renews for successive [____] periods unless either party provides [____] days written notice of termination.

☐ Renewal Option: Lessee has the option to renew for [____] additional term(s) of [____] each by providing written notice [____] days before expiration.

☐ No Renewal: This Lease terminates on the Expiration Date.

1.3 Early Termination

☐ Either party may terminate with [____] days written notice

☐ Early termination fee: $[__________] or [____] month(s) rent

☐ No early termination permitted except for cause

ARTICLE II - RENT AND FEES

2.1 Base Rent

Monthly Rent: $[__________] due on the [____] day of each month

OR

Annual Rent: $[__________] due [________________________________]

2.2 Security Deposit

Security Deposit: $[__________] (typically one or two months' rent)

Deposit due: ☐ Upon execution ☐ Before occupancy

Deposit application: ☐ Refundable at end of lease (less damages)
☐ Applied to last month's rent
☐ Non-refundable

Interest on deposit: ☐ None ☐ Per state law

2.3 Utilities

☐ All utilities included in rent

☐ Utilities separately metered and paid by Lessee:

• Electricity to: [________________________________]
• Other: [________________________________]

☐ Utilities pro-rated among tenants based on [________________]

2.4 Additional Fees

2.5 Rent Adjustments

☐ Rent is fixed for the initial term

☐ Rent may be adjusted annually by:
☐ CPI increase, not to exceed [____]%
☐ [____]% annual increase
☐ Fair market value review
☐ Lessor's reasonable determination

Notice of Increase: [____] days prior to effective date

2.6 Late Fees

☐ Late fee of $[________] or [____]% if rent not received by [____] day

☐ Interest on overdue amounts: [____]% per month

ARTICLE III - PERMITTED USE

3.1 Primary Use

The Premises shall be used primarily for:

☐ Storage of Lessee's aircraft
☐ Storage of aviation-related equipment
☐ Aircraft maintenance (see Section 3.3)
☐ Other aeronautical purposes: [________________________________]

FAA HANGAR USE POLICY NOTICE:

At federally obligated airports, hangars must be used primarily for aeronautical purposes. Storage of aircraft is the primary purpose. Non-aeronautical items may be stored only if they do not interfere with the aeronautical use.

3.2 Prohibited Uses

Lessee shall NOT use the Premises for:

☐ Non-aeronautical commercial business (retail sales, etc.)
☐ Residential purposes
☐ Storage that prevents aircraft storage
☐ Vehicle storage (except aviation support vehicles)
☐ Hazardous materials storage (beyond aviation fuels/lubricants)
☐ Any illegal activity
☐ Aircraft construction/building without prior approval
☐ Subleasing without consent
☐ [________________________________]

3.3 Aircraft Maintenance

Maintenance Permitted:
☐ Owner-performed preventive maintenance per 14 CFR Part 43, Appendix A
☐ Minor maintenance by certificated mechanics
☐ No maintenance permitted (storage only)
☐ Full maintenance operations permitted

Maintenance Restrictions:
☐ No engine run-ups inside hangar
☐ No painting or hazardous material use
☐ No hot work (welding, cutting) without permit
☐ Must comply with environmental regulations
☐ [________________________________]

ARTICLE IV - MAINTENANCE AND REPAIRS

4.1 Lessor's Responsibilities

Lessor shall maintain:

☐ Structural integrity of hangar (roof, walls, foundation)
☐ Hangar doors (frames and tracks)
☐ Exterior of building
☐ Common areas and ramp
☐ Utility infrastructure to the Premises
☐ [________________________________]

4.2 Lessee's Responsibilities

Lessee shall maintain:

☐ Interior of hangar in clean and orderly condition
☐ Light bulbs/fixtures inside hangar
☐ Minor door adjustments and lubrication
☐ Floor cleanliness (oil spills, stains)
☐ [________________________________]

4.3 Repairs and Notice

Lessee shall promptly notify Lessor of:

• Needed repairs to Lessor's responsibility items
• Any damage to the Premises
• Any safety hazards

Lessor shall respond to repair requests within [____] business days.

Emergency repairs: Lessor shall respond within [____] hours.

ARTICLE V - INSURANCE

5.1 Lessee's Insurance Requirements

Lessee shall maintain:

A. Aircraft Insurance:

B. General/Premises Liability:

☐ Lessor named as Additional Insured

☐ [____] days notice of cancellation required

5.2 Lessor's Insurance

Lessor shall maintain:
☐ Property insurance on hangar structure
☐ General liability insurance
☐ Hangarkeeper's liability: $[__________]

5.3 Proof of Insurance

Lessee shall provide Certificate of Insurance:
☐ Upon execution of this Lease
☐ Annually upon renewal
☐ Within [____] days of any policy change

5.4 Failure to Maintain Insurance

If Lessee fails to maintain required insurance:
☐ Lessor may obtain coverage and charge Lessee
☐ Lease may be terminated immediately
☐ Lessee shall indemnify Lessor for uninsured claims

ARTICLE VI - INDEMNIFICATION

6.1 Lessee's Indemnification

Lessee shall indemnify, defend, and hold harmless Lessor from all claims, damages, and expenses arising from:

• Lessee's use of the Premises
• Lessee's negligence or willful misconduct
• Operation of Lessee's aircraft
• Activities of Lessee's employees, agents, guests, or contractors
• Environmental contamination caused by Lessee

6.2 Lessor's Indemnification

Lessor shall indemnify Lessee from claims arising from:

• Lessor's negligence or willful misconduct
• Defects in the Premises not caused by Lessee
• Lessor's breach of this Lease

ARTICLE VII - ENVIRONMENTAL COMPLIANCE

7.1 Environmental Obligations

Lessee agrees to:

☐ Comply with all environmental laws and regulations
☐ Properly store and dispose of all hazardous materials
☐ Immediately report any spills or releases
☐ Use spill containment for fueling operations
☐ Not discharge any pollutants to storm drains
☐ Maintain required environmental permits

7.2 Hazardous Materials Inventory

Lessee may store the following hazardous materials:

7.3 Environmental Remediation

Lessee shall be responsible for remediation of any contamination caused by Lessee's activities.

ARTICLE VIII - ACCESS AND SECURITY

8.1 Lessee Access

☐ 24-hour access to hangar and aircraft
☐ Access limited to: [________________________________]

8.2 Lessor Access

Lessor may access the Premises:

☐ For emergency purposes at any time
☐ For inspections with [____] hours notice
☐ For repairs as reasonably necessary
☐ To show premises to prospective tenants (with [____] hours notice)

8.3 Security

☐ Lessor provides perimeter security
☐ Lessee responsible for hangar locks
☐ Access cards/codes provided: [____] per hangar
☐ Additional cards/codes: $[________] each

ARTICLE IX - ASSIGNMENT AND SUBLETTING

9.1 Prohibition

☐ Lessee may not assign or sublet without Lessor's prior written consent

☐ Lessor's consent shall not be unreasonably withheld

9.2 Conditions for Approval

If subletting permitted, conditions include:

• Subtenant meets all lease requirements
• Sublease for aeronautical purposes only
• Lessee remains responsible for all obligations
• Sublease fee: $[__________]

ARTICLE X - DEFAULT AND REMEDIES

10.1 Events of Default

The following constitute Events of Default:

☐ Failure to pay rent within [____] days of due date
☐ Failure to maintain required insurance
☐ Violation of use restrictions
☐ Unauthorized assignment or subletting
☐ Filing for bankruptcy or insolvency
☐ Abandonment of Premises
☐ Material breach of any lease term not cured within [____] days of notice

10.2 Lessor's Remedies

Upon Event of Default, Lessor may:

☐ Terminate this Lease with [____] days notice
☐ Re-enter and take possession of Premises
☐ Remove Lessee's property (at Lessee's expense)
☐ Recover all rent due plus damages
☐ Exercise lien rights on aircraft and property
☐ Pursue all other legal remedies

10.3 Lessee's Remedies

If Lessor breaches this Lease:

☐ Lessee may terminate with [____] days notice if not cured
☐ Lessee may pursue damages
☐ Lessee may withhold rent for habitability issues (per state law)

ARTICLE XI - END OF LEASE

11.1 Surrender of Premises

Upon expiration or termination, Lessee shall:

☐ Remove all aircraft and personal property
☐ Remove all equipment and improvements (unless Lessor elects to keep)
☐ Return hangar in same condition as received (ordinary wear excepted)
☐ Return all keys, access cards, and remotes
☐ Clean hangar floor (remove oil stains, etc.)

11.2 Holdover

If Lessee remains after expiration without Lessor's consent:

☐ Lessee becomes month-to-month tenant at [____]% of prior rent

☐ Lessor may treat as trespasser and pursue eviction

11.3 Abandoned Property

Property left in hangar after [____] days following termination shall be considered abandoned and may be disposed of by Lessor at Lessee's expense.

ARTICLE XII - GENERAL PROVISIONS

12.1 Notices

All notices shall be in writing and sent to addresses above by:
☐ Certified mail, return receipt requested
☐ Personal delivery
☐ Email (with confirmation)

12.2 Governing Law

This Lease governed by laws of State of [________________].

12.3 Dispute Resolution

☐ Mediation required before litigation
☐ Arbitration in [________________]
☐ Litigation in courts of [________________]

12.4 Entire Agreement

This Lease constitutes the entire agreement. Amendments must be in writing.

12.5 Severability

If any provision is invalid, remaining provisions remain in effect.

12.6 FAA Compliance

If the Airport receives federal funds:

• This Lease is subject to FAA grant assurances
• Lessee agrees to comply with FAA hangar use policy
• Lessor reserves right to modify lease for FAA compliance

12.7 Subordination

This Lease is subordinate to any financing secured by Lessor and to FAA grant agreements.

SIGNATURES

LESSOR:

Signature: [________________________________]

Printed Name: [________________________________]

Title: [________________________________]

Date: [__/__/____]

LESSEE:

Signature: [________________________________]

Printed Name: [________________________________]

Title (if entity): [________________________________]

Date: [__/__/____]

EXHIBIT A - HANGAR DIAGRAM/LOCATION

[Attach diagram showing hangar location and boundaries]

EXHIBIT B - CONDITION REPORT

[Attach move-in condition report documenting existing conditions]

EXHIBIT C - INSURANCE CERTIFICATE

[Attach Lessee's certificate of insurance]

This template is for informational purposes only and does not constitute legal advice. Hangar leases involve aviation-specific considerations and may be subject to FAA requirements. Consult with an aviation attorney for specific guidance.