What is rent?
Rent is a fee that is periodically paid by a property tenant/renter to the property owner, for use of space in the property. If the tenant/renter uses the space for business or other non-residential purpose, the term commercial lease usually applies.
What is the difference between residential rent and commercial rent?
Residential rent implies the property is used by the tenant as a residence and not for profit – no sale of goods or services or manufacturing activity. The agreement can be on a periodic basis, which offers more flexibility (month-to-month) or for a fixed term, which offers more security (usually at least a year). The payment is usually based on a set amount per month.
Every state has built-in tenant-oriented protections to ensure a tenant’s right to safe and secure housing and protect against unscrupulous landlords.
Commercial rent (lease) is a contract between a business and a landlord, for commercial/for profit use of the property. This type of rental agreement is usually for a longer period of time – the lease term is at least a few years. The payment is usually based on the square footage occupied by the tenant and, depending on the type of lease, the periodical payment may include other expenses incurred by the tenant. (See Lease)
Contrary to the residential context, a commercial tenant is considered to be on equal footing with the landlord in negotiating a commercial lease agreement. Therefore, there are usually far fewer state protections in place that look out for a business tenant.
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