There are many laws governing commercial and residential property leases but those that pertain to commercial leases are much less stringent in requirements of landlords than those for residential properties. Since the parties involved in commercial agreements are considered by law to be competent business people, landlords are allowed more freedom in the transactions – providing of course that they do not abuse their power.
Landlords may require anywhere from one to three month’s security deposit from their commercial tenants if stated in the lease and agreed upon by the tenant. However, residential landlords are limited to a maximum of two month’s security deposit.
Commercial landlords may also require that the bank provides a letter of credit for those tenants who are not financially stable – or for those tenants who wish to have expensive modifications made to the rental premises.
Evicting residential tenants is very time consuming and difficult in some states. Before any legal action is taken, the landlord must first give the tenant a Written Notice to Quit which provides time for them to fix any problems.
It is not absolutely necessary for the landlord to give any written notice to commercial tenants before filing a lawsuit to evict them. However, it is recommended that tenants be provided with written notice and a chance to make changes in any existing problems to avoid legal issues.
It is always good business sense to consult your attorney before entering into any legal agreement with commercial or residential tenants or before attempting to make any changes in existing agreements.