The Difference Between Residential and Commercial Lease Agreements
When it comes to renting a new property, whether its commercial property you plan to use for some type of a new or existing business, or if it’s a residential property, that you and your loved one’s plan on living in – it can be a quite confusing process. The fact of the matter is that according to Mr. Rajiv Syed, Esq. the top attorney when it comes to residential landlord tenant law, lease agreements are a vital piece of any landlord renter relationship, and not only are they vital, legally, but they are also a vital part of ensuring that both sides have a valid understanding of what they should expect. The fact is that whether its residential or commercial landlord tenant law lease agreements, there is a lot you need to know and a lot you must learn. Singing a lease agreement is an important step for a new business owner, especially if they plan on renting a location for a store. The fact is that commercial real estate is an entirely different animal, and there is a lot more that meets the eye. Whether it’s a storefront, an office, or a production facility, you will eventually need to rent a space for a business, especially when its to grow and scale. Once you have found the space that’s for you, and allows you and your business to flourish the best it can, its important that you do everything you can to get the space and do your research beforehand. Signing the contract is the vital, often pesky, final step in the process, and is often the last thing that’s standing in your way from just moving in and running your business. But like most legal agreements, a business lease is an important document that requires some research. In this article, we will be exploring the world of commercial landlord tenant law, and try to help explain the difference between that and residential landlord tenant law.
Commercial Leases Versus Residential Leases
According to Mr. Syed, considered to be one of the top attorneys when it comes to commercial landlord tenant law, a commercial lease is required any time a business rents a commercial property for the purposes of conducting any type pf business at any specific location. By definition, a commercial lease agreement is a legally binding contract between a landlord and a business rental tenant. Just like when it comes to residential landlord tenant law leases, the landlord agrees to rent out the property – whether it’s a storefront or an office space, in exchange for an agreed upon rental fee. In many cases, especially in NYC a commercial lease agreement will last anywhere from three to five years, and create a relationship between the renter and the landlord. While it seems very similar to a residential lease agreement, there are a few important distinctions to keep in mind. Firstly, according to Mr. Syed, the top attorney when it comes to commercial landlord tenant law NYC has to offer, while both involve a landlord renting space to a tenant in exchange for money, a residential lease cannot be used for business purposes. In addition, in most cases, commercial leases are less regulated and offer less protection than residential leases – as there are tons of different laws in place to protect residential tenants from being hurt by their landlords. Another one of the hallmarks of a commercial lease agreement is that they are usually longer in duration and offer far greater flexibility in terms of negotiating different conditions than residential lease agreements.
One of the major differences when it comes to commercial and residential lease agreements is the fees and expenses that one must incur as a residential renter. In most cases, unless it is somehow dictated within the lease agreement, in a residential lease agreement are usually not responsible for paying property taxes, whereas with commercial lease agreements, it’s very common for the tenant to pay at least a portion of the property taxes.It’s important to understand however, that most every aspect of any lease agreement – especially a commercial lease agreement can be negotiated. Its important that no matter if you are a residential renter, or looking to sign a commercial landlord tenant law agreement, that you should at least try to negotiate some of the different factors involved. This will allow you to get the best possible deal for you and your business. while when it comes to residential landlord tenant law there are most commonly fixed terms, a commercial lease is often far more negotiable, in fact in NYC many businesses might have one-year leases, while others have 10 or even 20-year leases – with rent controlled prices or set price increases for rent based on the economy. By negotiating these types of factors, it can help create leverage and help your business to flourish. For more information on lease agreements, be sure to contact the office of Rajiv Syed.