New Hampshire Commercial Lease Agreement

Implied Covenant of Good Faith and Fair Dealing

Contracts aren’t designed to address every possible scenario between parties or provide comprehensive terms for all obligations. Instead, the law assumes implicit duties to manage situations not explicitly mentioned in the contract. Even if a contract doesn’t specifically mandate cooperation or non-interference from one party, the inherent principle of good faith and fair dealing remains a guiding factor in the business relationship.

This principle of good faith and fair dealing implies that parties shouldn’t dodge the essence of the agreement, misuse their authority when defining contract terms, neglect their duties, intentionally perform poorly, or obstruct or fail to assist in the other party’s performance.

Statutory Notice Periods

• New Hampshire Commercial Lease Agreement has a 30-day notice period for a landlord and tenant. The landlord may terminate only for just cause. 

• Tenant’s termination: If the rental termination date mentioned in the notice doesn’t align with the date on which the rent is due, then the tenant will be held accountable for paying the rent for the entire month in which the notice expires until the next rent due date unless the rental agreement specifies otherwise.

Security Deposits

• Notably, the security deposit must not surpass the rent of one (1) month. 

• A helpful suggestion is to take photographs of the property’s state during move-in and move-out to prevent any disagreements regarding security deposit deductions.

Disclosures

In New Hampshire, it’s mandatory for the lessor of a commercial property, or their representative, to furnish the lessee with details about 

• Lead-based paint and radon presence
• Adhere to Underground Storage Tank (UST) regulations

Termination and Renewal

The termination and renewal periods for a New Hampshire Commercial Lease Agreement can vary based on the specific terms of the agreement. However, there are some general guidelines:

• Renewal Period: The lessee typically has the right to renew the lease for an additional term by giving the lessor a Notice of Renewal within a specified time frame prior to the expiration of the Lease Term.

• Termination: In some cases, such as a five (5) year lease, a tenant may be required to wait until after a certain period of the lease (e.g., three (3) years) has been completed. Once this minimum period is completed, the tenant must notify the landlord of their intent to terminate.