Rhode Island Commercial Lease Agreement

Implied Covenant of Good Faith and Fair Dealing

Rhode Island’s legally binding agreement incorporates an implicit obligation of good faith and fair dealing. This obligation mandates that neither party engages in any conduct that could hinder or impair the other party’s right to receive the benefits stipulated by the agreement. 

Statutory Notice Periods

• In the case of non-payment of rent, a landlord may issue a five (5) day Notice to Pay or Quit without any legal obligation to provide a grace period. 
• The notice must be served to the tenant, indicating that if the total rent amount isn’t paid by the 15th day of the month, the tenant must vacate the premises.
• When signing a Rhode Island Commercial Lease Agreement, it’s important to keep in mind that the notice period required may differ depending on the terms of the contract. 
• Notice periods range from 30 to 90 days, but it’s best to review the lease agreement thoroughly to ensure you understand the specifics of the notice period.

Security Deposits

• Charging security deposits in Rhode Island is legal and unrestricted by state law.
• In Rhode Island, the security deposit isn’t required to be held in an interest-bearing account.

Disclosures

• Landlords must provide the names and contact information of the property manager and the authorized person for complaints and notices.
• Before signing a Rhode Island Commercial Lease Agreement, the landlord must inform the tenant of any unresolved code violations pertaining to the property.
• Landlords of properties built prior to 1978 are required by federal law to provide tenants with information regarding the dangers of lead-based paint.

Termination and Renewal

Rhode Island Commercial Lease Termination:

• If the tenant violates any term of this Rhodes Island Commercial Lease, except for paying rent, they’ll default if they don’t fix the issue within 20 days of written notice. 
• If the remedy takes longer than 20 days, the tenant won’t be in default if they start promptly and work diligently to complete it.
• This applies if a court appoints a receiver or trustee to take charge of the tenant’s or Guarantor’s property for 20 days or more.

Rhode Island Commercial Lease Renewal:

• Tenant shall have two (2) renewal options of six (6) years and five (5) years, respectively, following completion of the initial lease term, with each such term. 
• Each renewal option may be exercised by giving the Landlord written notice of the tenant’s election at least one hundred eighty (180) days before the lease Term or first renewal term expires.