What are restrictive covenants in leasehold agreements?

Restrictive covenants in leasehold agreements are terms that impose specific restrictions on how the property can be used or modified. These covenants are placed in lease agreements to protect the interests of both landlords and tenants by ensuring that certain standards and conditions are upheld within the property or development. For instance, they might prevent tenants from making alterations to the property without prior approval, or from using the property for certain prohibited activities. This helps maintain the character of the property and surrounding area, and ensures compliance with local regulations and community guidelines.

The focus of these covenants is on limitations rather than freedoms, which is why it emphasizes that such terms control how the property can be utilized rather than allowing unrestricted modifications or usages.