Renting commercial space is a significant consideration for any business. The success of your business is largely contingent on its location and the terms of the lease you entered into.
Before you engage a landlord, you must understand how a commercial lease differs from a residential one. In addition, before you sign anything, take time to go through the lease terms, its length, rent payable and details regarding maintenance or the configuration of the space.
How commercial and residential leases compare
You may have signed a residential lease before, but a commercial lease is very different. Below are some differences that you should know to make an informed rental decision.
- Commercial leases are binding and last longer. You cannot easily alter the terms of your commercial lease. Also, they are legally binding contracts with a substantial amount of money at stake. However, you can negotiate your lease terms with your landlord, such as your ability to make modifications to the premises.
- Commercial leases are not uniform. Usually, the terms of each lease are different depending on the negotiations undertaken between you and the landlord. It is why you need to examine every lease agreement offered to you carefully.
- There are fewer consumer protection laws. Most commercial leases are not subject to consumer protection laws governing residential leases. For instance, state laws provide less consumer protection against deceitful landlord practices since there’s an assumption that business people are more knowledgeable than residential ones.
Protecting your business interests means, among other things, taking time to read over the lease agreement in detail. This may minimize your chances of assuming financial liability should you violate the terms of your lease.