Commercial leases are one of the most important—and most overlooked—legal documents in business. Whether you’re a landlord leasing office space or a small business looking for your first storefront, the lease agreement you sign can either protect you or leave you exposed.
In this post, we break down key legal issues in Utah commercial leasing from both perspectives. If you’re signing or drafting a lease, this is what you need to know.
For Landlords: Protecting Your Property and Cash Flow
If you’re a property owner or manager leasing commercial space, your lease agreement is your first line of defense against disputes and income loss. Here’s what to prioritize:
1. Clear Default and Eviction Terms
A commercial tenant who stops paying rent or violates the lease can severely disrupt your business. Unlike residential leases, commercial evictions in Utah aren’t subject to the same strict tenant protections, but the lease must clearly state:
- What constitutes a default
- The timeline for curing a breach
- When and how eviction proceedings may begin
Need help understanding your eviction rights? See our post on 2025 Utah Eviction Law Changes.
2. Maintenance and Repairs
Make sure the lease defines which party handles maintenance, repairs, and improvements. Ambiguity here is one of the most common sources of commercial lease disputes.
3. Security Deposits
Clearly state the amount, return terms, and conditions for withholding. If a dispute arises, you’ll need documentation and written terms to avoid liability.
Learn more about landlord best practices in our post on Avoiding Costly Eviction Mistakes.
For Tenants: Don’t Sign Away Your Leverage
Many small business owners focus on rent and location—but ignore legal traps hidden in commercial leases. Here’s what to watch out for:
1. Personal Guarantees
Landlords often require business owners to personally guarantee the lease. This means that even if your business closes, you may still be on the hook for unpaid rent.
If you’re signing a lease as an LLC or corporation, make sure your entity status is properly reflected in the lease and consider negotiating the terms of any personal guarantee.
2. Hidden Costs and Operating Expenses
Some leases include triple-net (NNN) or other expense-sharing clauses that saddle the tenant with property taxes, insurance, and maintenance costs. Understand what you’re truly agreeing to pay.
For guidance on forming and protecting your business, read: Do I Need an Operating Agreement for My Utah LLC?
3. Termination and Renewal Clauses
Tenants should pay close attention to how the lease ends. Are there penalties for early termination? Does the lease auto-renew? Can the landlord increase rent without notice? These clauses can quietly trap you into an unfavorable deal.
Common Pitfalls for Both Sides
Whether you’re the landlord or the tenant, you should avoid these shared mistakes:
- Using generic or outdated lease templates without legal review
- Failing to define use restrictions, which can lead to zoning or nuisance disputes
- Skipping over dispute resolution clauses, leaving you exposed to unnecessary litigation
When to Involve an Attorney
Commercial leases are more flexible than residential ones, but that flexibility makes them more dangerous without legal guidance. An attorney can help:
- Draft lease terms that match your needs
- Review a lease before you sign
- Negotiate clauses to protect your interests
- Help you enforce or exit a lease legally if something goes wrong
Contact Duckworth Legal Group Today
Whether you’re a landlord protecting your property or a small business locking in your next location, don’t navigate commercial leases alone. Duckworth Legal Group provides legal clarity and strong advocacy for Utah landlords and entrepreneurs.
Call us: (801) 882-7444
Email us: info@duckworthlegalgroup.com