• NY Apartment Law
  • Fair & Affordable Housing
  • Commercial Lease Law
  • Guidebooks
  • Archives
  • Main Articles
  • Model Lease Clauses
  • Q&A
  • Dos & Don'ts
  • Recent Court Rulings
  • eAlerts
  • Log In
  • Log Out
  • My Account
  • Subscribe
  • NY Apartment Law
  • New York Apartment Law Insider
  • New York Landlord V. Tenant
  • Co-Op & Condo Case Law Digest
  • New York Rent Regulation Checklist, Fourth Edition
  • 2025 New York City Apartment Management Checklist
  • Fair & Affordable Housing
  • Fair Housing Coach
  • Assisted Housing Management Insider
  • Tax Credit Housing Management Insider
  • Fair Housing Boot Camp. Basic Training For New Hires
  • Commercial Lease Law
  • Commercial Lease Law Insider
  • Best Commercial Lease Clauses, 17/e
  • Best Commercial Lease Clauses: Tenant's Edition
  • Best Commercial Lease Clauses, 17/e
  • Best Commercial Lease Clauses, 17/e
  • Main Articles
  • Features
  • Broker's Buzz
  • Drafting Tips
  • In the News
  • Negotiating Tips
  • Plugging Loopholes
  • Traps to Avoid
  • Model Lease Clauses
  • Model Lease Clauses
  • Model Agreements
  • Other Model Tools
  • Q&A
  • Q&A
  • Pop Quiz
  • Winners & Losers
  • Ask the Insider
  • Recent Court Rulings
  • Landlord Wins
  • Landlord Loses
May 12, 2025
We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
The Habitat Group Logo
  • NY Apartment Law
    • New York Apartment Law Insider
    • New York Landlord V. Tenant
    • Co-Op & Condo Case Law Digest
    • New York Rent Regulation Checklist, Fourth Edition
    • 2025 New York City Apartment Management Checklist
  • Fair & Affordable Housing
    • Fair Housing Coach
    • Assisted Housing Management Insider
    • Tax Credit Housing Management Insider
    • Fair Housing Boot Camp. Basic Training For New Hires
  • Commercial Lease Law
    • Commercial Lease Law Insider
    • Best Commercial Lease Clauses, 17/e
      • Best Commercial Lease Clauses, 17/e
    • Best Commercial Lease Clauses: Tenant's Edition
  • Guidebooks
  • May 12, 2025
  • Log In
  • Log Out
  • My Account
  • Subscribe
  • May 12, 2025
CLLI_logo_2020.jpg
  • Archives
  • Main Articles
    • Features
    • Broker's Buzz
    • Drafting Tips
    • In the News
    • Negotiating Tips
    • Plugging Loopholes
    • Traps to Avoid
  • Model Lease Clauses
    • Model Lease Clauses
    • Model Agreements
    • Other Model Tools
  • Q&A
    • Q&A
    • Pop Quiz
    • Winners & Losers
    • Ask the Insider
  • Dos & Don'ts
  • Recent Court Rulings
    • Landlord Wins
    • Landlord Loses
  • eAlerts
Free Issue
The Habitat Group Logo
May 12, 2025
  • Log In
  • Log Out
  • My Account
Home » Don't Use Residential Lease Form for Commercial Space

Don't Use Residential Lease Form for Commercial Space

Feb 1, 2006

Don't use a residential lease form if you're renting commercial space to a tenant, advises Houston attorney John S. Hollyfield. Always use a commercial lease form instead, he says. Even if you attempt to change the residential lease form into a commercial lease, you run the risk of inadvertently leaving in residential rental property concepts that could hurt you or leaving out necessary or desirable commercial lease provisions. Residential rental property laws are often more favorable to tenants than commercial rental property laws, notes Hollyfield.

For example, a Texas owner rented a house to a tenant to use as a law office. The parties used a pre-printed residential lease form and made handwritten changes to turn it into a commercial lease. But the lease form said that “Chapter 92 of the Texas Property Code,” which applies only to leases of residential properties, would control the parties' security deposit obligations. After the lease ended, the owner returned part of the security deposit to the tenant, but deducted certain cleaning and repair costs. The tenant sued for the return of the rest of the security deposit, saying Chapter 92 didn't permit those deductions. The owner argued that Chapter 92 didn't apply to a lease of commercial property.

A Texas appeals court ruled that the owner had to refund the rest of the security deposit because Chapter 92 applied. The parties were entitled to select the terms of their lease—even residential property terms. The lease's security deposit clause was conspicuous and the parties made handwritten changes to it, indicating that they were aware of it and intended to include it in the lease, the court said. The court wouldn't rewrite the lease simply because the owner disliked the application of one of its provisions [Cotter v. Tobey].

CLLI Sources

John S. Hollyfield, Esq.: Of Counsel, Fulbright & Jaworski L.L.P., 1301 McKinney, Ste. 5100, Houston, TX 77010-3095; 713-651-5151; jhollyfield@fulbright.com.

Dos & Don'ts
    • Related Articles

      Don't Give Licensee Exclusive Right to Use Specific Space for Set Term

      Don't Let Tenant Use Space for Non-Sales Purposes

      Don't Use Latin Phrases in Lease

    • Publications
      • Assisted Housing Management Insider
      • Commercial Lease Law Insider
      • Co-op & Condo Case Law Tracker Digest
      • Fair Housing Coach
      • New York Apartment Law Insider
      • New York Landlord v. Tenant
      • Tax Credit Housing Management Insider
    • Additional Links
      • Contact Us
      • Advertise
      • Group Subscriptions
      • Privacy Policy
    • Boards of Advisors
      • Assisted Housing Management Insider
      • Commercial Lease Law Insider
      • Fair Housing Coach
      • New York Apartment Law Insider
      • Tax Credit Housing Management Insider
    ©2025. All Rights Reserved. Content: The Habitat Group. CMS, Hosting & Web Development: ePublishing
    The Habitat Group Logo
    • NY Apartment Law
      • New York Apartment Law Insider
      • New York Landlord V. Tenant
      • Co-Op & Condo Case Law Digest
      • New York Rent Regulation Checklist, Fourth Edition
      • 2025 New York City Apartment Management Checklist
    • Fair & Affordable Housing
      • Fair Housing Coach
      • Assisted Housing Management Insider
      • Tax Credit Housing Management Insider
      • Fair Housing Boot Camp. Basic Training For New Hires
    • Commercial Lease Law
      • Commercial Lease Law Insider
      • Best Commercial Lease Clauses, 17/e
        • Best Commercial Lease Clauses, 17/e
      • Best Commercial Lease Clauses: Tenant's Edition
    • Guidebooks
    • May 12, 2025
    • Log In
    • Log Out
    • My Account
    • Subscribe
    • May 12, 2025
    CLLI_logo_2020.jpg
    • Archives
    • Main Articles
      • Features
      • Broker's Buzz
      • Drafting Tips
      • In the News
      • Negotiating Tips
      • Plugging Loopholes
      • Traps to Avoid
    • Model Lease Clauses
      • Model Lease Clauses
      • Model Agreements
      • Other Model Tools
    • Q&A
      • Q&A
      • Pop Quiz
      • Winners & Losers
      • Ask the Insider
    • Dos & Don'ts
    • Recent Court Rulings
      • Landlord Wins
      • Landlord Loses
    • eAlerts
    Free Issue
    The Habitat Group Logo
    May 12, 2025
    • Log In
    • Log Out
    • My Account