Types of Real-Estate Leases

Types of Real-Estate Leases

A lease is essentially a contract between a tenant and a landlord. It gives the tenant legal rights to possess the landlord’s real-estate. If the tenant is to make specific use of the property, it must be stated in the contract.

The lease contract contains standard terms and conditions and highlights the legal rights and obligations of each party involved. Depending on the type of tenant and the nature of the real-estate, leases can vary. For example, in case a landowner has properties available for both commercial and residential purpose.

Real-estate leases vary by state too. Building codes also play a role in imposing certain restrictions on the use of the rental property. For example, some areas require buildings to have fire escapes.

Residential Leases

A residential lease is for tenants wanting to seek residence in the leased property. The tenant pays the landlord a mutually-agreed upon amount of rent, usually on a monthly basis.

In most cases, the landlord is financially responsible for maintenance, insurance, and real-estate taxes. The tenants are responsible for any personal property they keep in the units leased. Some pay for renter’s insurance to cover their personal belongings.

When it comes to residential leases, the warranty of habitability is one of the notable legal impositions you should be aware of. Under the warranty the landlord is obligated to keep the residential property habitable.

This includes functioning plumbing system, electric power, drinkable water, and so on. The warranty of habitability applies in almost all U.S. states and deems each residential lease subject to this warranty, even if the lease contract doesn’t mention it.

Commercial Lease

There are a number of commercial leases available. Some may overlap, so focus on the rent structure to understand which type of commercial lease you’re being offered.

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Popular commercial lease types are:

  • Base Rent: It includes the minimum amount the tenant will have to pay in monthly installments. If other fees are applicable, they’ll be added to the base rent amount.
  • Double Net Lease: Here, the term “double” indicates that the tenant will be paying two additional costs: tax and insurance. These will be added to the existing base rent.
  • Fully Serviced Lease: This is also called a gross lease and requires the landlord to take financial responsibility for the “extra” costs of the real-estate. However, the tenant might be paying more than in the base rent commercial lease.

 

Affordable Real-Estate Attorney Services

Milenkovic Law Group PLLC offers expert real-estate attorney services in Brooklyn, Queens, The Bronx, and surrounding areas in New York. From reviewing all transactions related to leases, to inspections of residential, commercial, and mix-use properties, their services cover it all.

They also offer personal injury, brain injury, and U.S. immigration attorney services. Call at 914-202-0610 to find out the full scope of their legal services.

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