Property managers who expand from residential into commercial property management are entering a different legal and operational environment. Florida Chapter 83 -- the landlord-tenant law that governs residential properties -- does not apply to commercial tenancies. Commercial leases are governed by contract law, which means the lease document itself is the primary source of the parties' rights and obligations. Everything from the notice required before eviction to the tenant's maintenance obligations is determined by what the lease says, not by statute.

This guide covers the six key differences property managers need to understand when managing commercial versus residential property in Florida.

1. No Residential Landlord-Tenant Law

Florida's Residential Landlord and Tenant Act (Chapter 83) does not apply to commercial tenancies. This means that the specific protections tenants receive under residential law -- the 3-day notice procedure, the security deposit holding and return rules under FL Stat 83.49, the habitability standards under FL Stat 83.51 -- are not available to commercial tenants by statute. Commercial landlords and tenants negotiate the terms of their relationship in the lease, and those terms are enforceable as written (subject to general contract law principles).

This works in both directions. Commercial landlords have more flexibility than residential landlords -- they can negotiate almost any lease term. But they also have less statutory protection if the lease is silent on a point that a Chapter 83 provision would have covered for a residential tenancy. A well-drafted commercial lease is essential precisely because the statute does not fill in the gaps.

2. Lease Structure: NNN, Modified Gross, and Full-Service Gross

Commercial leases come in several structural forms that determine how operating expenses are divided between landlord and tenant:

  • Triple-net (NNN): The tenant pays base rent plus their proportionate share of property taxes, property insurance, and common area maintenance (CAM) costs. NNN is the dominant structure for retail and light industrial in Florida. The landlord receives a predictable net income; the tenant absorbs variable operating cost risk.
  • Modified gross: The tenant and landlord share operating expenses according to a negotiated formula -- some expenses are included in the base rent, others are passed through to the tenant. Common in office properties.
  • Full-service gross: The tenant pays a single rent figure that includes all operating expenses. The landlord bears all operating cost risk. Less common in Florida commercial market except in smaller office suites.
FLORIDA COMMERCIAL LEASE STRUCTURE COMPARISON
Triple-net (NNN)Tenant pays base + taxes + insurance + CAM
Modified grossNegotiated expense split
Full-service grossAll expenses in base rent (landlord risk)
CAM reconciliationAnnual actual vs. estimated adjustment

3. Insurance Requirements Are Different

Commercial property insurance is a different product from the residential dwelling fire insurance that covers single-family rentals. For commercial properties, the owner should carry:

  • Commercial property insurance: Covers the building and, for gross lease properties, business personal property. Typically written on a replacement cost basis.
  • Commercial general liability (CGL): Minimum $1M per occurrence and $2M aggregate is standard for small commercial properties. Higher limits for larger or higher-traffic properties.
  • Business income/loss of rents: Pays rent income if the property is damaged and uninhabitable. Essential for multi-tenant commercial properties where lost rent from a single tenant can be significant.

Additionally, commercial leases typically require tenants to carry their own commercial general liability insurance -- usually at limits matching or exceeding the landlord's -- and to name the landlord as an additional insured. The property manager should collect certificates of insurance from each tenant at lease signing and require the tenant to provide updated certificates annually.

4. ADA Compliance

The Americans with Disabilities Act requires commercial properties open to the public to provide accessible facilities. ADA compliance responsibilities in Florida commercial property are typically addressed in the lease -- commercial leases frequently specify who is responsible for ADA compliance in common areas (typically the landlord) versus the tenant's demised space (typically the tenant for improvements the tenant makes). Property managers should understand ADA requirements for the specific properties they manage and ensure the lease clearly allocates compliance responsibility.

ADA NON-COMPLIANCE CAN EXPOSE BOTH LANDLORD AND TENANT

ADA compliance obligations do not disappear because the lease assigns them to one party. A landlord can face an ADA complaint or lawsuit even if the lease makes the tenant responsible for accessibility upgrades. Property managers should understand the ADA status of each commercial property and advise owner-clients accordingly. Consult an attorney familiar with ADA requirements for commercial real estate for property-specific guidance.

5. Commercial Eviction in Florida

Commercial eviction in Florida follows a different process than residential eviction. Key differences:

  • The 3-day notice for non-payment that applies to residential tenancies is not required by statute for commercial tenancies. The notice period required before filing for eviction is whatever the lease specifies.
  • Commercial eviction complaints are filed in the circuit court (not county court) for most commercial tenancies.
  • The lease controls the default provisions, cure periods, and the landlord's remedies, which may include distress for rent (a lien on personal property on the premises), acceleration of the remaining rent, and damages.
  • Commercial eviction proceedings are typically more complex and more costly than residential eviction. An attorney experienced in commercial landlord-tenant law should be retained.

6. Property Management Agreement for Commercial Properties

A commercial property management agreement is typically more complex than its residential counterpart. It may include provisions for:

  • Tenant improvement (TI) oversight -- managing build-out projects when a new commercial tenant is fitting out their space
  • CAM reconciliation -- calculating and communicating the annual NNN reconciliation to tenants
  • Lease renewal negotiation -- commercial lease renewals often involve more negotiation than residential renewals
  • Construction and capital improvement coordination -- commercial properties often have larger-scale maintenance and improvement projects than residential
REVIEW THE EXISTING LEASES BEFORE TAKING ON A COMMERCIAL PROPERTY

Before agreeing to manage a commercial property, review the existing leases carefully. Understand the lease structure (NNN, modified gross, or gross), the base rent and escalation terms, the CAM caps or floors, the expiration dates, the tenant renewal options, and any tenant improvement allowance obligations that may remain outstanding. Commercial leases typically run 3 to 10 years and contain complex provisions that affect the management obligations throughout the term.

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The Bottom Line

Commercial property management in Florida requires a different knowledge base than residential management. The lease governs everything, Chapter 83 does not apply, insurance requirements are different, and eviction is more complex. Property managers expanding into commercial should invest in understanding the specific lease structures and legal frameworks before taking on their first commercial assignment. For related topics, see the guides on property management agreements in Florida, how to audit your Florida property insurance portfolio, and Florida property manager legal responsibilities.