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lease forms example

Differences Between Residential Agreement and Commercial Lease

First is,  Arrangement – Residential lease is an arrangement when the rental property is used as a home or a place to reside in, apartments and condominiums.  Commercial lease is an arrangement when the rental property is used for business purposes like stores, offices and industrial buildings.

Second is,  Protection Laws – Residential lease has a consumer protection laws.  These laws are made to protect the tenants from dishonest landlords.  In commercial lease, consumer protection laws do not apply.  Since they are considered as two knowledgeable business parties, they can negotiate the terms of lease according to their contentedness.

Third is, Forms – Residential lease have standard form to follow.  In lease form agreement, it typically states the lease starting date, lease closing date, names of parties involved, number of tenants, contact information, property address, amount of rent, payment method, conditions that agreed about, and acknowledgment of both parties involved by signing the lease agreement. Commercial lease have no standard form to follow.  Each of them have their own customized lease agreement depends of what the landlord needs.  In the lease agreement, of course it includes information like on residential lease agreement has and additional such as obligations, regulations and a lot of conditions to follow.  As a suggestion, every tenant should read carefully the contents of the commercial lease agreement before signing it

COMMERCIAL LEASE

First is, Length of Term – Commercial lease is usually for long-term period unlike residential lease. One cannot change or break a commercial lease just like that.  It is a legal contract that engaged the landlord and tenant.

Second is, Computation and Amount of Rent – Commercial lease has a larger amount of rent compare to residential lease. It usually requires an increase of rent every year. Sometimes, the increase will be based depends on the last year gross sale or percentage of last year’s rent of the tenant.

Third is, Negotiations – Residential lease don’t have a lot of negotiations compared to commercial lease.  Typical negotiations are the number of tenants, if the property allows pets, simple as that.  In commercial lease, there are much more negotiations because both parties’ businesses are involved.  They should negotiate about their particular requirements they needed for the businesses and should agree upon.  Examples of these negotiations are extension of space, building divisions, fixtures, features needed for their spaces, and the intention use of the property.  These negotiations should layout in the lease agreement and should talk about very clearly to avoid misunderstanding.

Forth is, Security deposits – In commercial lease, amount of security deposit has no limit.  Compared to residential lease, it’s typically 2 month’s rent collected.  It is important to take note of the security deposit charge and the arrangement for its return.

About the Author

James is a leader in writing about legal forms and agreements that may assist you when you are in the search of the right legal document. He writes many articles about forms ranging from, real estate forms, power of attorney forms, landlord tenant forms, and almost any legal form that you are searching for.

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Spanish help?? The verb “ir”?

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En el invierno voy a jugar basquetból. — During the winter, I am going to play basketball.

I go to the beach. — Voy a la playa.

I am going to the beach. — Voy a ir a la playa.

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