The tenant (the business occupying the space) who signs a commercial lease agreement is generally expected to be a more savvy, sophisticated, and informed tenant (also known as a lessee) than a tenant in a residential lease, and the law usually does not provide a commercial tenant with the same protections as residential tenant receives.

Because the law does not provide a commercial tenant with many protections, it is up to the commercial tenant to read, understand, and negotiate protections in a proposed lease agreement before signing it, as most every paragraph in a commercial lease agreement can have a significant impact on a business’s operations and financial stability.

Laws vary from state to state, but a commercial landlord’s ability to shut off a tenant’s utilities is usually determined by the terms of the lease agreement and the state’s contract law—to determine, for example, if any breach of the lease agreement by the tenant was a material breach that might justify an extreme measure such as shutting off the utilities.

Contract law in most states recognizes an implied duty of good faith and fair dealing between parties to a contract, and a commercial landlord who shuts off a tenant’s utilities because the tenant is a few days late paying the rent may be in breach of the landlord’s implied duty of good faith and fair dealing.

In Georgia, commercial tenants are presumed to be more knowledgeable and are afforded fewer legal protections than residential tenants. The expectation is that commercial tenants will thoroughly review and negotiate the terms of their lease agreements to secure their own protections, as the lease can significantly affect their business operations and financial health. Unlike residential leases, which are heavily regulated to protect individual tenants, commercial leases are largely governed by the contract agreed upon by the landlord and tenant. Regarding utility shutoffs, such actions by a commercial landlord in Georgia would typically be dictated by the specific terms of the lease agreement and general contract law principles. While there is an implied duty of good faith and fair dealing in contractual relationships, a landlord's decision to shut off utilities for a minor lease violation, such as being a few days late on rent, could potentially be seen as a breach of this duty. However, the enforceability of such actions would ultimately depend on the lease's provisions and the circumstances surrounding the breach.