Wisconsin Commercial Lease: Types, Key Terms To Know, Costs

Reviewed for legal accuracy by Forest Hamilton JD

Quick Facts — Commercial Lease Lawyers

Wisconsin commercial lease contract is an agreement between a lessee and a lessor for renting a commercial property. Regulations regarding these contracts have been governed by the recent enactment of the Wisconsin Administrative Code's ATCP 134, which comprises prerequisites that apply to commercial landlord-lessee contracts.

Effects of Act 143 on Commercial Lease Agreements in Wisconsin

The predecessor to Act 143, known as Senate Bill 466, was prepared to retain commercial landlord-lessee contracts. Act 143 did not address the prerequisites in that enactment other than to prescribe a revision of a rental contract will be considered invalid if it incorporates some restricted vocabulary.

Thus, Act 143, introduced after Bill 466, applies to residential and commercial landlord-tenant contracts. Among the conditions that apply to both are those that handle the following matters:

  • Addresses severability of rental contract conditions.
  • Specifies a suspension on removals of lessees.
  • Allows for owners to be granted holdover damages when called for.
  • Sets guidelines for the disposition of surrendered property.
  • Sets benchmarks regarding when owners may retain security deposits and procedures for returning security deposits to lessees.
  • Documents processes and privileges regarding the receipt of unpaid rent.
  • Sets prerequisites when a breach of Chapter 704 may be treated as an unjust trade practice.
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What Tenants Should Know Before They Rent a Commercial Property?

Landlord-tenant laws in Wisconsin mandate that landlords should disclose any building or housing code violation in the agreement which includes,

  • The landlord has knowledge of the violation.
  • The violation affects the dwelling unit or a common area that a tenant will rent.
  • The violation poses a threat to your health or safety.
  • The violation has not been rectified.

Landlords must also disclose if a tenant needs to pay for utilities and a breakdown of the utility charges if the cost is not individually metered. It is the responsibility of the landlord to make any repairs needed to comply with local housing codes and maintain safe premises. However, tenants are responsible for any damages made by them or their guests. Tenants are also required to comply with any maintenance and sanitation requirements imposed by local housing codes.

The landlord must provide the name and address of a maintenance person unless the owner lives in the building, and the building has only 4 dwelling units.

How Commercial Property Owners Can Guard Their Interests?

The most suitable way that commercial owners can do to avoid severe tenant problems is by hiring experienced attorneys who can help them draft commercial lease contracts. With a professionally prepared commercial lease agreement, fundamental concerns are dealt with by the lessee. Likewise, the terms and conditions in a commercial lease addressing lessee infringements cover the following problems:

  • Failure to settle rent or other expenses allocated to the lessee under the lease. The lease must include terminology authorizing the lessor to continue obtaining rent according to the contract provisions even if the lessee vacates the premises.
  • Using the premises for pursuits other than consented to in the lease.
  • Failing to keep the property in a good state.
  • Using the premises as a tool for obtaining credit with other commercial interests.
  • Failing to extend and run a business according to the provisions set forth.

Conclusion

Wisconsin law mandates that to obtain damages, the owner must prove that appropriate actions were taken to reduce any breach of the commercial lease. Consult our expert attorneys at ContractsCounsel, who can help you draft the best commercial lease agreement to protect your interests. Compare multiple free proposals from vetted lawyers and save 60% less than traditional law firms - start your job proposal here.

Frequently Asked Questions

How do I hire a lawyer to draft a commercial lease in Wisconsin?

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ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


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Asked on Jan 14, 2025

Can a landlord terminate a commercial lease early?

I have been running a small retail business for the past two years in a commercial space rented under a 5-year lease agreement. However, due to unforeseen financial difficulties, my business is struggling to stay afloat and I may need to close down. I have heard rumors that my landlord has the right to terminate the lease early, and I want to know if this is true and what my options are in such a situation.

Michelle M.

Answered Jan 26, 2025

The answer to your question is contained in the lease. All rights and obligations of parties to a commercial lease are controlled by and provided for within the lease. If your lease provides for early termination by the landlord, then the landlord can exercise that option. If it doesn't provide for early termination and you are in compliance with the lease, then they can't terminate early (at least not without your consent). You should retain a local attorney who can review the lease and provide advice concerning your specific situation. Best of luck!

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Asked on Apr 24, 2023

Can the tenant sublease the property to another business?

I am a business owner and I am looking to rent a commercial space for my business. I am considering signing a commercial lease with the landlord, but I am concerned about my ability to sublease the property to another business. I am trying to determine whether this is an option that is available to me and what the implications would be.

Joseph M.

Answered May 12, 2023

In Massachusetts, a commercial tenant can sublet or even fully assign the unit to a third party - UNLESS there is a specific prohibition in the current lease. However, even if there is such a prohibition, it might still be worth speaking to the landlord about since it might be mutually beneficial.

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Asked on May 12, 2021

Should I use a lawyer for commercial lease?

It is a very long lease and I'm not sure what it says. I also don't want to pay a fortune to have it reviewed to eat into my budget.

George O.

Answered May 12, 2021

Yes! Before signing any contract/agreement/lease, or anything that appears to be a binding agreement, it is worth the money to have a lawyer review it. I charge a flat fee to review any and all agreements, so my clients know up front what they are paying, and they consider it a cost of doing business. The alternative, i.e. not having a lawyer review your agreements prior to signing, can be, and usually is, exponentially more expensive should a conflict arise (and they often do).

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Asked on Apr 20, 2023

How is the lease renewed at the end of the lease term?

I am a small business owner who recently signed a three-year commercial lease for my business. I am looking to understand the process of renewing the lease at the end of the three-year term. I am interested in learning more about the process, the timeline, and what I need to do to ensure that I can continue to operate my business at this location.

Paul S.

Answered Apr 21, 2023

If your lease has a renewal option, then you renew by following that process, which involves giving notice during the specified time frame. If you did not include a renewal option in your lease, then you'll need to contact the landlord 6-12 months before the end of the term, and inform the landlord that you want to renew the lease. Then you'll have to negotiate the terms with the landlord.

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Asked on Apr 13, 2023

How long is a typical commercial lease agreement?

I am a small business owner looking to expand my operations, and I am considering leasing a commercial space. I understand that commercial lease agreements vary in length, but I am unsure how long the typical agreement is. I would like to know this information so I can better plan for my business needs and budget.

Moss S.

Answered Apr 28, 2023

The term of a commercial lease typically is no less than 3 years, and could be either 5 or 10 years. Both the Landlord and Tenant usually like long term leases.

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