Tennessee Commercial Lease Agreement
A Tennessee commercial lease agreement is a legal contract between a landlord and a business tenant that governs the rental of commercial properties, including retail, industrial, or office spaces. This document outlines essential terms related to the rental arrangement, such as monthly rent, security deposits, lease duration, payment rates, and options for renewal.
Tennessee Commercial Lease Agreement
Rental Laws
The rental laws that apply to commercial lease agreements in Tennessee are governed by Title 47, Chapter 2A of the Tennessee Uniform Commercial Code. These laws provide a framework for the rights and responsibilities of both landlords and tenants in commercial leasing situations.
Consumer Protection Laws
Consumer protection laws pertinent to commercial leases are detailed in Tenn. Code § 47-2A-104. These laws are designed to protect the interests of tenants and ensure fair treatment in commercial leasing agreements.
Jurisdiction
According to Tenn. Code § 47-2A-106, if a lease agreement specifies a law from a jurisdiction other than where the lessee resides, that law cannot be enforced. This provision ensures that tenants are not subject to legal standards that are not applicable to their residential jurisdiction.
Required Disclosures
Adherence to State Codes
Landlords are mandated to provide tenants, upon request, with a signed disclosure that indicates the extent to which an industrial property of 5,000 square feet or less or a commercial property of 1,500 square feet or less complies with local and state electrical, plumbing, and fire codes, as outlined in Tenn. Code § 66-7-108(a). This disclosure is crucial for ensuring that tenants are aware of the safety and regulatory compliance of the property they are renting.
Tennessee Business Entity Search
Landlords are encouraged to conduct a Tennessee business entity search to verify the legitimacy of a tenant’s business entity. This step, in addition to performing credit checks, helps landlords make informed decisions before finalizing the lease agreement.
Statutes
- Tenn. Code Ann. § 66-28-301(a) – Security deposits
- Tenn. Code Ann. § 66-28-301(b)(2)(A) – Security deposits
- Tenn. Code Ann. § 66-28-301(g)(1) – Security deposits
- Tenn. Code Ann. § 66-28-301(b)(2) – Security deposits
- Tenn. Code Ann. § 66-28-301(b)(1)(B) – Security deposits
- Tenn. Code Ann. § 66-28-201(c) – Terms and conditions
- Tenn. Code Ann. § 66-28-201(d) – Terms and conditions
- Rent
- Tenn. Code Ann. § 47-29-102 – Handling charge
- Tenn. Code Ann. § 68-111-104 – Inspection
- Tenn. Code Ann. § 66-28-502 – Failure to supply essential services
- Tenn. Code Ann. § 66-28-512(c) – Landlord Recover Court and Attorney Fees
- Tenn. Code Ann. § 66-28-512(b) – Termination of periodic tenancy – Holdover remedies
- Tenn. Code Ann. § 66-28-512(a) – Termination of periodic tenancy – Holdover remedies
- Tenn. Code Ann. § 66-28-507 – Landlord Mitigate Damages
- Tenn. Code Ann. § 66-28-501 – Noncompliance with rental agreement by landlord
- Tenn. Code Ann. § 66-7-109(d) – Notice of termination by landlord – Testimony of manager against tenant
- Tenn. Code Ann. § 66-7-109 and § 66-28-505 – Notice of termination by landlord – Testimony of manager against tenant
- Tenn. Code Ann. § 66-7-109 – Termination for Lease Violation and Tenn.Code Ann. § 66-28-505 – Noncompliance by tenant – Failure to pay rent
- Tenn. Code Ann. § 66-7-107(a) – Termination for knowing controlled substance or prostitution violations
- Tenn. Code Ann. § 66-28-403(a) – Access by landlord
- Tenn. Code Ann. § 66-28-403(b) – Access by landlord
- Tenn. Code Ann. § 66-28-403(e)(5) – Access by landlord
- Tenn. Code Ann. § 66-28-519 – Towing of vehicles
- Tenn. Code Ann. § 66-28-404 – Use and occupation by tenant
- Tenn. Code Ann. § 66-28-405 – Abandonment
- Tenn. Code Ann. § 66-28-304 – Maintenance by landlord
- Tenn. Code Ann. § 66-28-401 – General maintenance and conduct obligations
- Tenn. Code Ann. § 66-28-302 – [Effective 1/1/2025] Address of landlord or agent
- Tenn. Code Ann. § 66-7-101 – Writing required for long term leases – Authentication and registration
- Tenn. Code Ann. § 66-7-104 and § 66-7-106 – Physically disabled persons’ access to housing accommodations
- Tenn. Code Ann. § 66-28-108 – Notification sent by e-mail
- Tenn. Code Ann. § 66-28-402 – Rules and regulations
- Tenn. Code Ann. § 66-28-514 – Retaliatory conduct prohibited
- Tenn. Code Ann. § 66-28-107 – Business License
- Tenn. Code Ann. § 16-15-501(d) – General jurisdiction
- Tenn. Code Ann. § 28-3-109 – Rent – Official misconduct – Contracts not otherwise covered – Title insurance – Demand notes
- Tenn. Code Ann. § 28-3-105 – Property tort actions – Statutory liabilities
FAQs
A Tennessee commercial lease agreement is a legal contract between a landlord and a business tenant that outlines the rental terms for commercial properties such as retail, industrial, or office spaces. It includes details like monthly rent, security deposit, lease duration, payment rates, and renewal options.
Key requirements for a commercial lease in Tennessee include adherence to the Tennessee Uniform Commercial Code, consumer protection laws, and specific jurisdictional regulations. Landlords must also provide disclosures regarding compliance with local and state electrical, plumbing, and fire codes if requested by the tenant.
Landlords in Tennessee can verify a tenant’s business legitimacy by performing a business entity search in addition to conducting credit checks. This helps ensure that the tenant’s business is properly registered and operational before finalizing the lease agreement.
Landlords in Tennessee must provide tenants with a signed disclosure detailing the extent to which an industrial property of 5,000 square feet or less or a commercial property of 1,500 square feet or less complies with local and state electrical, plumbing, and fire codes, upon tenant request.
According to Tenn. Code § 47-2A-106, if the governing law specified in a lease agreement originates from a jurisdiction other than where the lessee resides, that law cannot be enforced. This emphasizes the importance of using local laws in lease agreements.
You can download a Tennessee commercial lease agreement template in PDF or MS Word format, which can be useful for landlords and tenants to create a legally binding contract that meets state requirements.