Pennsylvania (PA) Commercial Lease Agreement

Security Deposit Limits and Handling

• Pennsylvania laws don’t stipulate limits for commercial security deposits, set requirements for their return, or restrict where the money is held. 
• It’s recommended to include optional clauses on the amount and procedure for return after the tenant has vacated the premises.
• An optional clause can be added to state that the landlord isn’t obliged to apply a deposit to cover rent, damages, or other charges in arrears but can do so.
• In the event of a transfer of interest, the landlord can transfer the security deposit to another party, following proper notice, and be released of all liability.

Right of Entry for Inspections and Repairs

• Pennsylvania relies on the Covenant of Quiet Enjoyment, meaning a tenant has the right to occupy the premises, use them for their intended purpose, and go about their business uninterrupted.
• An optional clause, compliant with quiet enjoyment, can state that the landlord will give notice prior to entry for repairs and set a notice period.

Environmental Responsibilities

• Environmental clean-up liability should be identified. The landlord can include a clause stating that the tenant shall indemnify them for environmental clean-up costs. It’s also possible to stipulate that the tenant is responsible for the clean-up.
• In Pennsylvania, the Activity and Use Limitation (AUL) registry can be used to identify restrictions and remediation requirements.

Notice Requirements

• A clause on notices should include fields where the addresses of the tenant and the landlord can be added, confirming that those are the agreed locations where written notice can be delivered.
• Pennsylvania enforces Confession of Judgement clauses. You can include such a clause for rent or to retake possession of the property. 
• For any increase in rent in the state of Pennsylvania, the landlord should provide a 60-day written notice to the tenant.
• If either party wants to terminate the lease without any violations caused, they must provide at least a 30-day written notice to the other party before the end of the commercial lease.
• However, if the tenant violates the commercial lease agreement, the landlord may issue a 15-day notice to quit.
• In most cases the landlord has to provide a reasonable notice for entry, which is usually within 24-48 hours. However, in cases of emergency, the landlord or their representative agents may enter without any prior notice.

Include Required Disclosures

Pennsylvania has a few mandatory disclosures for commercial leases, as listed below. 

• Licenses and Permits: The landlord must request to have a copy of the state, federal, and local permits that the tenant or business requires to use the premises. These copies should also be kept on-site in case anyone requests to see them.
• Lead-Based Paint: This is a federal state disclosure that must be provided to the tenant if the leased property was built before 1978. The landlord must also provide a pamphlet explaining the hazards of lead-based paint. 
• Insurance: The landlord must inform the tenant that they have to acquire appropriate insurance for their business. In case the tenant doesn’t purchase any insurance after signing the agreement, then the tenant accepts the responsibility for any damages caused and will not hold the landlord liable for these damages.