Tennessee Commercial Lease Agreement Template
In Tennessee, Commercial Lease Agreements are used to lay out the terms of an agreement between a landlord and tenant renting out a commercial space.
Different types of commercial spaces that could be leased with this legal contract include:
- Retail Stores
- Warehouses
- Industrial spaces
- Offices
There are certain Tennessee laws affecting what you must disclose about the property before leasing it, and governing how these documents can be used.
Required Disclosures in Tennessee Commercial Lease Agreement
You must disclose several aspects of the property in your Commercial Lease Agreements, including:
- ADA responsibilities
- Environmental conditions
- Possible hazards
Specific to Tennessee, if your space is 1,500 square feet or smaller (or industrial space under 5,000 sq ft), you can ask the owner for a written disclosure statement. (TN Code § 66-7-108)
This disclosure should state whether the building meets fire, plumbing, and electrical codes.
If the information is false, the tenant can end the lease or claim damages within one year.
Security Deposit Details in Tennessee Commercial Lease Agreements
There are no rules set out for security deposit limits in Tennessee law. This is purely contractual.
You should clearly state the security deposit you require in your Lease Agreement, and any details regarding the return of the lease.
Recording and Execution Formalities in Tennessee
In TN, If your lease is for more than three years, you need to have it formally recorded. (TN Code § 66-7-101)
To protect your rights against buyers or lenders, you should record the lease or a memorandum of it at the county register’s office.
Both you and the tenant should sign and notarize the document or memo.
You can check your local county rules for acknowledgment and recording fees.
Grace Periods in Tennessee
Tennessee law does not require a grace period for paying rent on commercial leases. This means rent is due on the date stated in your lease.
If you want extra time to pay, make sure your lease clearly includes a grace period clause and defines how many days you have before late fees apply.