What to check first
Residential and commercial leases differ, but both can shift costs and control through dense clauses.
- Security deposit, move-in fees, late fees, rent increases, and payment grace periods.
- Maintenance, repairs, utilities, taxes, insurance, and damage responsibility.
- Landlord entry rights, quiet enjoyment, inspections, and notice requirements.
- Renewal, holdover rent, early termination, subleasing, and assignment.
- Personal guarantees, default remedies, attorney fees, and commercial build-out duties.
Common lease red flags
A lease may be standard in the market and still create downside you should understand.
- Tenant pays all repairs or building costs without clear limits.
- Landlord can enter without reasonable notice or broad restrictions.
- Automatic renewal or holdover penalties that are easy to miss.
- Personal guarantee for a commercial lease without a cap or release.
- Deposit deductions, fees, or penalties described too broadly.
Before you sign
Match the lease language to the actual property condition and business plan.
- Document property condition before move-in.
- Ask who pays for major systems, code compliance, and casualty repairs.
- For commercial leases, review guarantees and exit rights carefully.
Rental agreement FAQ
What is a personal guarantee in a lease?
A personal guarantee can make an individual responsible for lease obligations, often in commercial leases. Caps, burn-offs, and release terms matter.
Can a lease make the tenant pay repairs?
Yes, especially in commercial leases. Residential rules vary by location, and some repair duties may not be transferable.
What is a holdover clause?
It describes what happens if the tenant stays after the lease ends. It may raise rent sharply or create month-to-month obligations.
Should I worry about landlord entry language?
Yes. Entry rights should usually include reasonable notice and purposes, subject to emergencies and local law.
Can TermsHuman review a full lease?
Yes, within the character limit, but long leases are clearer if you check rent, repairs, renewal, default, and termination sections separately.