Nebraska Commercial Lease Agreement

Implied Covenant of Good Faith and Fair Dealing

• Nebraska law recognizes an implied covenant of good faith and fair dealing in every contract, requiring parties to avoid injuring each other’s right to receive contract benefits. 
• The landlord and tenant shall act honestly and reasonably in performing lease obligations to ensure neither party is deprived of the intended benefits. Actions taken in bad faith could violate this covenant.

Statutory Notice Periods

• Nebraska law allows the landlord to demand payment within three (3) days if the tenant fails to pay rent when due. The landlord must give the tenant written notice stating the overdue amount and that they must pay within three (3) days, or the lease will be terminated.
• If the tenant fails to pay after receiving written notice, the landlord may consider the lease terminated and begin eviction proceedings. However, the lease is generally reinstated if the landlord accepts late rent payment after the three (3) day notice expires.
• The parties may agree in the lease to a different notice period before the landlord can terminate for overdue rent. 

Security Deposit

• Nebraska statutes don’t restrict or cap the amount a commercial landlord can demand as a security deposit. 
• The landlord can use a reasonable amount of the security deposit to cover potential costs and damages at the end of the lease term.
• Unless explicitly agreed to in a written addendum, the landlord isn’t legally obligated to hold the security deposit in a separate, interest-bearing account under Nebraska law. 
• Subsequently, the landlord has no requirement under state statutes to pay the tenant any interest earned on the security deposit principal throughout the lease.

Disclosures

• Identity disclosure: The names and contact information of any persons who may access the premises during the lease are mandatory. The lease should also include an official address for tenant notices and complaints. 
• Lead-based paint disclosure: If the premises were built before 1978, the landlord must disclose known lead-based paint hazards per federal law. 

Termination and Renewal

• To terminate this lease before the end of the term, the tenant must provide written notice to the landlord at least 90/120 days before the desired termination date. 
• The landlord isn’t obligated to accept the renewal request. 
• If Landlord consents to renewal, the parties shall sign a new lease or renewal amendment with agreed-upon terms at least 30/60 days before this lease expires.   
• If the tenant fails to vacate the premises after lease expiration or proper termination notice, the landlord may recover damages of 1.5-2x the existing rent rate per month for each month the tenant remains in unlawful possession.