Washington State has many protections for residential tenants’ rights, but commercial tenants face a very different legal landscape. If you’re planning to rent a commercial space, it pays off to take a close look at your tenant rights and protections before signing a lease.
Commercial Tenants’ Rights in Washington State
Commercial tenants do not have all of the same legal protections as residential tenants. Since the state views both the landlord and the tenant as knowledgeable business people, the law generally assumes that both parties can negotiate lease terms that benefit them. As a result, there aren’t many regulations around commercial tenancies.
The wording of the lease agreement is the main factor determining your rights as a commercial tenant. A signed lease agreement can either give you more rights or waive away rights you would otherwise have.
How to Prevent Commercial Tenancy Disputes
The best way to prevent a dispute down the road is to work with a lawyer before signing a lease agreement. The lease should specify not only both parties’ rights but also your responsibilities, terms, and what will happen if a breach occurs.
A good commercial lease agreement should define:
- The name of the lessor (landlord) and lessee (tenant).
- A description of the property, including the unit’s condition at move-in time.
- The lease term and tenancy type (fixed term or month-to-month).
- Rental payment amounts and schedules, including any security or damage deposit and whether the tenant is expected to pay property-related taxes.
- Cost allocations for any shared spaces and amenities.
- Insurance requirements.
- Permitted and non-permitted uses of the premises.
- The landlord’s premise access rights, including whether they can enter without prior notice and whether they must have access to keys or access codes.
- Who is responsible for operating, maintenance, and repair costs.
- The details of any space alterations that need to happen before the tenant moves in. This section should cover who pays for what, any restrictions on what the tenant can do, what information the tenant needs to provide the landlord to get their planned work approved, and who is responsible for getting any needed permits or regulatory approvals.
- Conditions for terminating the lease early or extending the lease.
- Conditions for forfeiting or partially refunding any security or damage deposit.
- Consequences of failure to pay rent and other expenses.
- Consequences of failure to meet other responsibilities and the processes both parties will use in the event of a breach.
- Both parties’ liabilities.
As a future tenant, you will likely want to negotiate for the landlord to guarantee the doors, electrical systems, HVAC units, dock systems, and any other existing building systems for the first three months of the lease. This guarantee reduces your risk of needing to complete expensive repairs that the landlord or previous tenant had been putting off.
We recommend sticking to standard legal industry language as much as possible, even if you find simpler language easier to read. The standard lease terminology has been tested and defined in the courts, and insurance companies rely on those definitions. Using it gives you clearer protections than you would have with other language. You can add an additional summary in easier-to-understand language if needed.
It takes a long time to review a commercial lease agreement. Both you and the landlord need time to review the language and receive counsel from a lawyer. Ideally, you should start the process of negotiating a multi-year commercial lease agreement at least nine months before the move-in date.
What to Do If Your Tenant Rights Are Violated
If your rights as a commercial tenant have been violated, you have the right to take your landlord to court. The court may be able to force your landlord to comply with the conditions of the lease agreement or compensate you for any losses related to the breach of contract.
Your lease should have a section that specifies what will happen if there is a breach of contract. If your landlord violates your rights, the first thing you should do is refer back to your lease terms.
Beyond whatever is specified in your lease, your rights as a commercial tenant may be different depending on the city and county you live in. We recommend speaking with a lawyer as soon as possible about your legal options.
Understanding the legal agreements and laws that affect your business is the best way to avoid expensive legal hassles. An experienced business real estate lawyer can help you understand your rights in the jurisdiction where you plan to rent. They can also help you draft and negotiate a good lease agreement.
The Anderson Hunter Law Firm has been serving businesses in Snohomish County and the surrounding area for well over a century. If you’re looking for help with a commercial lease negotiation or a breach of contract issue, we’re here to help.
Schedule a consultation with one of our business real estate lawyers today for expert, local legal advice.