Commercial Leases: Tenant Responsibilities

Commercial leases are agreements between commercial tenants and property owners as to the terms of a leasehold, including (but not limited to) length of tenancy, responsibilities of the parties, cost of rent and other provisions to which the parties consent. Tenants responsibilities in a commercial lease are generally much greater than those of a residential tenant.

Standard Commercial Lease Agreements

It is standard in a commercial lease for the landlord's responsibilities to be minimal. Sometimes they are responsible for maintaining the roof, exterior walls and utilities and nothing more. That leaves the tenant with a lot of responsibility. Furthermore, many lease agreements have provisions protecting the landlord from liability if the tenant is impacted by building problems such as needed repairs. This does not work out well for the tenant if he has a landlord who does not respond to repair needs.

Typical Commercial Tenant Responsibilities

While landlord and tenant law varies from state to state, and your lease agreement is the ultimate guide as to your responsibilities as a tenant, the following are common commercial tenant responsibilities:

• Duty to pay rent;
• Duty to provide the landlord notice of any needed repairs that are the landlord's responsibility;
• Duty to make repairs that are the tenant's responsibility; and
• Duty to give notice of any major changes in the tenancy, including subleases and property modifications.

Protecting Your Rights Through Lease Clauses

You have the right to negotiate clauses to protect your rights in a commercial lease agreement. You can seek clauses to hold the landlord responsible in case the building is not repaired. You can also include a clause which states that you can make repairs and discount the cost of repairs from rent if you give the landlord adequate notice of the repairs. Another provision that can protect you is to state that your rent will be reduced if your business is impacted by disrepair of the building. An attorney can assist you in coming up with other protective clauses to secure your rights as a tenant. The landlord only has a right to whatever agreement you come to mutually. You can take your business elsewhere if you cannot get favorable terms with a particular property owner.

Getting Legal Help

When negotiating a commercial lease, it is smart to get the help of an experienced real estate attorney who is knowledgeable about commercial leases. Contracts are filled with complicated language, and an attorney is equipped to decipher that language and help you look out for your best interests as a tenant.