Texas Commercial Lease Agreement Form
A Texas Commercial Lease Agreement is a legally binding contract between a landlord and a business tenant for leasing non-residential property.
Commercial spaces in Texas are often leased using this document, including:
- Office space
- Retail stores
- Warehouses
- Industrial sites
Commercial leases are less regulated by state laws than residential leases. This gives you more freedom to negotiate terms.
Both parties need to carefully negotiate before signing. Commercial leases typically last longer, so you need to fully understand the agreement.
Required Disclosures in Commercial Lease Agreements in Texas
There aren't many required disclosures for commercial leases in Texas. Still, it's a good idea to put certain key details in the lease. These can keep you out of any legal issues:
- Asbestos Disclosure (if applicable): You need to let tenants know if there is asbestos in the building. This is a federal law, and applies to all Texas Commercial Leases.
- ADA Compliance: Landlords and tenants should address responsibilities under the federal Americans with Disabilities Act, especially for businesses open to the public.
- Utilities and Common Area Charges: The lease must explain how the costs of utilities will be paid if the charges are shared.
It’s standard practice to outline these terms in the lease to prevent misunderstandings.
Texas Commercial Lease Grace Period for Rent Payments
Rent grace periods in Texas Commercial Leases are not required by state laws.
If the landlord chooses to offer one, the duration and terms of the grace period should be stated clearly in the lease.
Without a written Texas Commercial Space Lease Agreement, rent is due as specified in the lease. failure to pay on time may lead to default and possible eviction.
Landlords and tenants should negotiate this clause upfront, especially for long-term or high-value leases.
Security Deposits in Texas Commercial Lease Agreements
Texas does not limit the amount a landlord can request as a security deposit for a commercial lease. However, the rules regarding its return are defined under Texas Property Code Section 93.005:
Return deadline
Landlords must return the deposit within 60 days after the tenant surrenders the premises and provides a forwarding address.
Deductions
Landlords may deduct for damages or breaches but not for normal wear and tear (Sec. 93.006). If deductions are made, a written itemized list must be provided unless the tenant owes rent and there’s no dispute over the amount.
Bad faith penalties
A landlord who wrongfully withholds a deposit can be liable for up to triple the amount withheld, plus $100, attorney’s fees, and costs (Sec. 93.011).