Commercial Landlord / Tenant Law FAQs

In New Jersey, residential landlord-tenant laws are far more structured and protective of tenants than commercial ones. Commercial leases are largely governed by the terms agreed upon in the lease contract. This allows for more flexibility and negotiation between the parties. Like residential, commercial landlords usually need to provide reasonable notice before entering the property. However, the specifics may be dictated by the lease. The eviction process can be faster for commercial leases as compared to residential leases, and the specific terms may be dictated by the lease agreement.

New Jersey state law does not provide specific rules for returning security deposits on commercial leases. This contrasts with residential leases, which are subject to detailed rules on the handling of security deposits.

For commercial leases, the terms of the lease agreement typically govern how and when the security deposit should be returned. These lease agreements can vary widely, so the details can depend largely on what the landlord and tenant agreed to when the lease was signed.

Commercial landlord rights are largely established by the terms of the lease agreement rather than by specific statutes. As such, the landlord’s rights can vary quite significantly depending on what is stipulated in the lease. Some of the basic rights generally afforded to commercial landlords in New Jersey include a right to rent, right to evict, right to enter, right to recover damages, right to modify lease, and right to enforce lease terms.

Commercial tenant rights are typically derived from the lease agreement signed with the landlord and they can vary widely based on what’s negotiated in the lease. Some of the basic rights usually afforded to commercial tenants in New Jersey include quiet enjoyment, habitable premises, repair and maintenance, security deposit return, notice of entry, non-discrimination, and eviction protection.

In New Jersey, like most states, a commercial landlord generally cannot evict a tenant without a court order. This is referred to as a “self-help” eviction and is typically prohibited. If a tenant violates the terms of the lease agreement or fails to pay rent, the landlord usually has to follow these general steps: provide notice, file an eviction lawsuit, issue a court order, and enforcement of eviction.

A security deposit is a sum of money that a tenant gives to their landlord at the start of the lease term. This deposit serves as a type of insurance for the landlord, providing a way to cover any unpaid rent, damages beyond normal wear and tear, or other obligations that the tenant may fail to meet. As for commercial leases, in New Jersey and many other states, there aren’t statutory limits on the amount a landlord can charge for a security deposit as there are in residential leases. The amount is usually a matter of negotiation between the landlord and the tenant and is often equivalent to one or two months’ rent, but it can be more or less depending on the specific circumstances. It’s generally defined in the terms of the lease agreement.

New Jersey state law does not provide specific rules for returning security deposits on commercial leases. This contrasts with residential leases, which are subject to detailed rules on the handling of security deposits.

For commercial leases, the terms of the lease agreement typically govern how and when the security deposit should be returned. These lease agreements can vary widely, so the details can depend largely on what the landlord and tenant agreed to when the lease was signed.

In most cases, a landlord cannot increase rent during the term of a commercial lease unless the lease agreement itself allows for such an increase. This is often stipulated in a provision of the lease called a “rent escalation clause” or “rent increase clause.”

Rent escalation clauses allow for periodic increases in rent over the term of the lease. These increases might be a fixed percentage or amount, or they might be tied to an external factor like the Consumer Price Index or the building’s operating expenses.

If a lease does not include a rent escalation clause, the landlord typically must wait until the lease is up for renewal before they can increase the rent. At that point, the tenant and landlord would negotiate the new rent as part of the lease renewal process.

Commercial tenants in New Jersey, like in many other jurisdictions, don’t have as many statutory protections as residential tenants do when it comes to repairs. The specific obligations and options usually depend on what’s outlined in the lease agreement.

In general, a commercial lease is a binding contract and a tenant is expected to fulfill the terms of the lease, including its duration. However, there are circumstances in which a tenant might be able to break a lease early such as a Negotiated Early Termination Clause, Subleasing or Assigning the Lease and Business Bankruptcy.