What is the primary difference between a residential lease and a commercial lease?

The primary distinction between a residential lease and a commercial lease lies in the purpose of the leased property. A residential lease is specifically intended for dwellings where individuals live, such as apartments, houses, or condos. These leases typically focus on providing a safe and habitable environment for tenants as their primary residence. In contrast, a commercial lease is designed for properties used for business activities, such as offices, retail spaces, or warehouses.

The differences in purpose lead to a variety of implications for the terms and conditions of each type of lease. For example, commercial leases might not be subject to the same tenant protection laws that apply to residential leases, allowing for more negotiation flexibility regarding the lease terms. This fundamental difference in the intended use of the properties underscores the importance of understanding the context in which the lease operates.