Residential leases are contracts having no commercial purpose, although a few renters may operate their businesses from their homes. On the other hand, a commercial lease is a contract that is signed between a landlord and a commercial tenant. This type of agreement is aimed at offering a property to tenants that they can use for operating a business. Know about some of the big differences between a commercial lease agreement and a residential lease agreement.
There are plenty of consumer laws that are applicable to residential lease agreements, but are not applicable for commercial leases. In some states, laws offer less legal protection to owners of businesses against customer protection from dishonorable landlords, given that business owners are regarded as more well-versed individuals.
The terms are long, such as a few years, in many commercial lease agreements in states like California. On the other hand, residential leases in most cases are month-to-month or run for up to a year at the most.
Negotiable Lease Terms
Commercial lease landlords generally let business owners negotiate more flexible terms of lease so as to accommodate every business tenant. However, as compared to residential terms that are not as much negotiable, many laws in states like California have been enacted for the protection of residential lease contracts from the inclusion of unlawful or discriminatory terms in their own lease contracts.
Commercial lease landlords generally need business owners to have commercial liability insurance in case of some kind of loss or if anyone is injured on the premises. This is not the case with a residential lease agreement. Commercial landlords need business owners to include landlord as a named insured in their policy. But the terms of lease under a Liability Insurance might not need landlords to include the tenant, who is the business owner, as an insured. You may also download a power of attorney form or property bill of sale from the website forms.legal