Idaho Commercial Lease Agreement

An Idaho Commercial Lease Agreement is a legally binding contract for leasing commercial properties like office spaces, storefronts, and warehouses. This agreement outlines the terms and conditions the Lessor and the business Lessee agreed upon. It includes detailed provisions about rent, security deposits, lease terms, exclusivity, subleasing, and other relevant clauses.

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Idaho Commercial Lease Agreement

Implied Covenant of Good Faith and Fair Dealing

  • Every Idaho Commercial Lease Agreement carries an implied covenant of good faith and fair dealing. Both parties must act honestly, cooperatively, and without attempting to harm or disadvantage the other.
  • Breach of this covenant can result in legal consequences, including damages for the aggrieved party.

Statutory Notice Periods

Lease Agreements

The Lessees are generally bound to the lease duration unless early termination is consented to by the Lessor. Certain lease agreements may incorporate clauses allowing early termination subject to a penalty fee or under specific conditions, such as condemnation of the property.

Security Deposits

  • Security Deposit Refund Timeline: Pursuant to standard practice, a security deposit must be refunded within 21 days in the absence of an alternative agreement or within 30 days following the Lessee’s departure, as delineated in the Idaho Code 6-321.
  • Deductions from Security Deposit: Lessors must provide an itemized statement for any deductions from the security deposit for damages, excluding normal wear and tear, as specified in Idaho Code 6-321.
  • Security Deposit Limit: There’s no statutory cap on the amount that can be charged as a security deposit in Idaho.
  • Handling of Security Deposits: Idaho law doesn’t prescribe specific requirements for holding security deposits during tenancy. Local, county, or federal regulations may apply.
  • Withholding of Security Deposit: In the absence of specific statutes, the rental agreement should explicitly state conditions under which the Lessor can withhold a security deposit. Normal wear and tear cannot be a basis for withholding any portion of the security deposit, in line with Idaho Code 6-321.


  • Lead Paint Disclosure: Lessors must adhere to the federal Residential Lead-Based Paint Hazard Reduction Act of 1992, requiring disclosure of potential lead-paint hazards and the inclusion of a Lead Warning Statement in leases where applicable (buildings built before 1978).

Termination and Renewal


  • Lease Terms Review: Lessees and Lessors should examine the lease agreement for specific renewal clauses outlining the procedure and conditions for lease renewal.
  • Renewal Negotiation: When the time comes for renewal provisions, both parties may negotiate new terms for lease extension before lease expiration; normally, this is for another five (5) years.
  • Holdover Tenancy Implication: Should the Lessee continue occupancy post-lease expiration without a renewal agreement, both Lessor and Lessee should assume it to be a month-to-month tenancy under different legal terms.


  • Fixed-End Date Lease: No additional notice is required for leases with a predetermined termination date.
  • Lease Violation and Eviction Notice: In cases of lease violation, the Lessor must provide a written eviction notice to the Lessee, adhering to Idaho Code 6-304’s service requirements.

Late Fees and Early Termination

  • Late Fee Policy: Without a state-mandated statute, lease agreements should specify policies regarding late fee charges and conditions.
  • Early Termination Fees: While not regulated by a specific statute, lease agreements must detail the Lessor’s rights in scenarios of early lease termination, including potential withholding of security deposits for re-renting expenses.