- Jan 25, 2016
- By Calvin Boender
- Calvin Boender
I have years of experience in the commercial and residential real estate industries. I founded North Development Ltd. to facilitate residential and commercial projects in and around the greater Chicago area. The year 2004 marked one of my commercial property investments with the acquisition of over 31 Fannie May candy stores.
Leasing a house differs from leasing a commercial property in several ways, all of which are delineated in the property lease. One common misunderstanding is that commercial lessees are protected by the same laws designed to protect consumers renting residential properties. This is not the case. Most commercial leases do not account for a tenant,s privacy, nor do they establish limits on security deposits.
Residential leases often follow standard models. However, the owners of commercial property often do not base commercial leases on standard forms but rather draft each agreement according to the needs of the property owner and prospective tenant. Owners and tenants should agree on a precise amount for the security deposit and exact conditions for its return in order to avoid confusion and contention later. Also, it is a good idea to clarify the exact space being rented. For example, a property may include a bathroom on the premises, but the bathroom may fall outside the property lines or belong to another tenant leasing an adjoining space.