Many entrepreneurs looking for a location from which to run their business often assume that the process of securing a lease will be similar to renting a home, apartment, or another piece of residential real estate. However, the truth is that the law treats residential and commercial leases very differently, based on different assumptions regarding the tenants. Before signing a commercial lease, every potential business owner should understand how it may differ from renting a home.

Residential Real Estate

Every state, along with the federal government, extends legal protections to those renting a home, based on the understanding that most people lack the requisite expertise and resources to adequately represent their own interests in the transaction. The law requires that tenants ensure that real estate intended as living space feature a bare minimum of amenities and even dictate some of the terms to be included in the lease. For instance, the process through which a tenant is evicted is strictly regulated, and, in some jurisdictions, tenants are allowed to withhold rent if the residence becomes unlivable.

Commercial Real Estate

Leases for commercial properties, on the other hand, are relatively unregulated, since the law assumes that both parties to the agreement have sufficient resources to protect their own interests. Because each commercial lease is typically designed for a specific tenant, most parties have a skilled real estate attorney review the contract and identify any terms that may be problematic in the future. In general, this arrangement allows businesses more flexibility in negotiating the terms of the lease, rather than the standard general form typically used by residential landlords.

Stuart R Norman Jr is an experienced real estate attorney with over 40 years' experience representing the rights of business and homeowners throughout the Griswold, CT, area. Visit their website to learn more about their comprehensive array of real estate services, or call (860) 376-0069 to schedule a consultation today.