New Jersey (NJ) Commercial Lease Agreement

A New Jersey commercial lease agreement is a legally binding contract between a landlord and a business tenant, outlining the terms and conditions for the rental of commercial property in the state of New Jersey. This agreement typically covers aspects such as rent, lease duration, maintenance responsibilities, and other provisions specific to commercial leasing in New Jersey.

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New Jersey (NJ) Commercial Lease Agreement

Security Deposit Limits and Handling

  • Commercial security deposits have no limits, unlike residential ones. Lessors can ask whatever they believe is reasonable.
  • Lessors aren’t required to hold the security deposit in a separate account, so you can keep it in any account, even if it contains other funds.
  • Tenants aren’t entitled to interest on the security deposit, so lessors don’t need to bear any interest.
  • There are no specific laws regarding when the landlord must return the security deposit. Still, most landlords will add a 30-day return clause in the contract.

Right of Entry for Inspections and Repairs

  • Generally, lessors will add a clause that states they can enter the premises with adequate notice. Reasonable notice for entering the property is typically between 24 and 72 hours.
  • Unlike with residences, the landlord doesn’t need permission from the tenant if the right of entry is for inspections, but they must still provide a 24-hour notice with a specific time of entry.
  • Lessors must ensure their property satisfies all OSHA (Occupational Safety and Health Administration) regulations.
  • Lessees have the responsibility to maintain the premises in good condition. Any damages caused by their business, employees, or customers are their responsibility to repair.
  • For long-term leases, the upkeep and maintenance of the property will fall to the lessee, not the lessor.

Environmental Responsibilities

  • Landlords are responsible for ensuring their property satisfies all environmental regulations. They’ll add a clause stating the tenant’s responsibility towards these regulations.
  • If the lessor has any knowledge of environmental issues on the property, they must notify the lessee.
  • Let’s say the lessee deals with hazardous waste or other such material. In that case, the tenant must hire a professional contractor or make similar arrangements. It ensures they follow the federal, state, and local environmental laws.
  • The landlord can indemnify the lessee if they know of pre-existing environmental issues. However, it’s not required. They can also allow the tenant to do their due diligence.

Notice Requirements

  • Weekly agreements have a seven (7) day notice period. You must notify the other party 30 days in advance for monthly contracts. Yearly commercial leases generally have a three (3) month notice period, while fixed-term leases have no notice period.
  • The end date is final for leases with a fixed term unless the tenant or lessor has a reasonable excuse. Otherwise, the lessor can implement penalties, or the lessee can sue the landlord.
  • If the tenant breaks the agreement before the fixed end date, the lessor can file a lawsuit with the small claims court. 
  • Other penalties are losing the security deposit, paying all the outstanding rent, or paying a penalty fee.

Include Required Disclosures

This state only has one disclosure you need to remember.

  • Lead-Based Paint: Lessors must disclose if lead-based paint is present in buildings older than 1978.