Leases

Leases are legally binding contracts in which a property owner, known as the lessor, grants a tenant, or lessee, exclusive possession of real property for a specified period in exchange for rent. A lease defines the rights and duties of both parties and creates a temporary ownership-like interest in the premises.

Leases are commonly categorized as residential or commercial. Residential leases govern housing for individuals or families and may be fixed-term or periodic (such as month-to-month). Commercial leases cover business premises and may use a base rent plus additional charges, with common forms including gross, net, double-net, and triple-net structures that allocate operating expenses to the tenant.

Typical lease terms include a description of the property, the lease term (start and end dates), the rent amount and payment schedule, and any security deposit. Leases also address permitted uses, maintenance and repair obligations, alterations, subletting or assignment, renewal or notice provisions, and remedies for breach or default. Clauses may specify access for inspections, rules, and conditions for termination or renewal.

Landlords generally maintain structural components and major systems and must ensure habitable conditions, while tenants handle routine upkeep and comply with laws and lease rules. Security deposits are common; they secure performance and may be refundable at the end of the term, subject to deductions for damages or unpaid rent, per applicable law.

Leases end at the agreed term or may be terminated early for cause or by negotiated agreement. Local landlord-tenant laws govern notices, eviction procedures, rent increases, and deposit handling. When entering a lease, parties should review all terms, including sublease rights and any escalation or renewal options.