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Leases: Commercial or Residential

by | Jan 17, 2019

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If you lease property, the writing should specify the term of the lease; any notice requirements in the

Commercial and residential leases are contracts between a landlord and a tenant.

Commercial Real Estate Leases
Commercial leases are used for commercial real estate, including: retail properties, stores, office buildings, industrial buildings, warehouses, mixed use buildings, and land. Commercial leases are typically three to five years, with options to renew.

With commercial properties, leases vary widely, from full-services leases (that only require the tenant to pay a base rent) to net leases (which require a tenant to pay some of the building’s operating expenses). Other types of commercial leases include percentage leases (which require a tenant to pay a base rent and a percentage of their gross business sales) and absolute leases (which require a tenant to pay rent, utilities, expenses, and all repairs, including structural repairs).

Clauses In A Commercial Lease
Typical clauses in a commercial lease include:
•length of the lease
•the start date and end date of the lease
•renewal  or extension options for the lease
•termination clause for the lease
•rent and rent increases
•security deposit
•holdover rent (a surcharge if you stay beyond the term of your lease)
•late fees
•property taxes
•usable square feet
•permissible uses for the space
•leasehold improvements (upgrades to the space and who will be responsible for paying for the renovations)
•CAM charges (common area maintenance charges for cleaning, utilities, repairs, maintenance, property taxes, building insurance, security, parking, and more)
•permits (for repairs and leasehold improvements)
•option to purchase the property or first right of refusal
•transfer or sale of the lease
•subletting to other tenants
•remedies for breach of the lease
•exclusive-use clauses
•nuisance clauses
•non-disturbance clauses
•other covenants
•personal guarantees

Residential Real Estate Leases
Residential leases are used for residential properties, including: apartments, condos, duplexes, townhomes, lofts, and single-family homes.

Clauses In A Residential Lease
Typical clauses in a residential lease include:
•length of the lease
•the start date and end date of the lease
•rent and rent increases
•security deposit
•late fees
•pet policies
•smoking policies
•responsibility for repairs and maintenance
•number of occupants allowed to live in the residence
•subletting
•modifications (whether you’re allowed to make changes to the interior or exterior of your residence)
•permissible uses for the residence
•nuisance clauses
•remedies for breach of the lease

We’d be happy to review or draft a commercial or residential lease for you.

See also: Lease Amendments, Modifications, And Assignments

At Timely Contract, we have local real estate attorneys who have experience throughout Idaho, including: Boise, Post Falls, Coeur d’Alene, Lewiston, Moscow, and Sandpoint.

We also have local real estate attorneys who have experience throughout Montana, including: Missoula, Billings, Bozeman, and Kalispell.

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