Residential tenants have more rights than commercial renters in Georgia. Unfortunately the landlord has more rights when it comes to commercial property lease agreements. The key to understanding any tenant’s rights is in the lease agreement, which Georgia recognizes as a legally binding contract. Unless something in the lease is illegal, any tenant’s rights are limited by the language in the lease agreement, so it is crucial for all tenants to understand their lease agreements before signing.
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Before Signing the Lease
The potential commercial tenant has the right to request a subordination, non-disturbance and attornment agreement, which requires a lender to honor a tenant’s lease in the event of foreclosure on the leased property. If the landlord’s lender does not want to sign an SNDA agreement, the tenant might want to find another property to lease.
All potential tenants should inspect the property before leasing and have a lawyer look over the lease agreement before signing.
Residential tenants have the right to privacy in the rental property. The landlord must give ample notice before entering the property and enter only at a reasonable time and for a legitimate reason. The same is not true with commercial property. Landlords may enter a commercial property whenever they want, as long as they do not interfere with the commercial tenant’s business.
Georgia requires the landlord of a commercial property to insure the property against fire and other basic risks. The commercial tenant has the right to request proof of insurance before paying rent. However, the tenant is responsible for liability insurance.
The landlord may lock out a commercial tenant for not paying rent. This is different with residential tenants, as the landlord may need a court order before locking them out. Commercial tenants do not have the right to the leased property as they would residential property. Further, a landlord may sell the commercial tenant’s property to cover back rent.
Georgia does not have a governmental agency that settles dispute between landlords and tenants or that has the power to force either party to behave in a particular manner. If commercial tenants cannot resolve a dispute with a landlord on their own, they must use the courts, either directly or through a lawyer, to enforce their legal rights.
If you have questions regarding commercial landlord/tenant law, let us help! Thrift & McLemore’s attorneys have assisted numerous companies and individuals in the legal field. Contact Thrift & McLemore by email at [email protected] or by phone at 678-784-4150 to discuss how we can help you.