Procurement of Supplies / Services

Procurement of supplies or services refers to a contractual provision within a lease that might require the tenant to purchase certain items from the landlord or from one of the landlord’s associates. This is a board term that might encompass any number of different elements. In some cases, the lease might require the tenant to purchase air conditioning service from one distinct company, or it might require that if the tenant wants to purchase cable service, he or she can only do so from one company. Most often, this is done when the landlord gets some sort of benefit from the third party associate. The landlord might get a referral fee from a business for bringing the tenant to them. These provisions are typically in large apartment complex contracts because the people who choose to live in those apartments have little bargaining power over small items like procurement.