Rental Leases - Personal and Corporate

2 Replies

I am in the process of buying a new home and will be turning my current home into a rental property.  Is there any difference in lease terms if I rent to a small company as opposed to a private renter/family?  Would I need to use a different lease?  I have a small company that is interested and I wanted to make sure I don't miss anything.

Thank you!

We use the same rental agreement for our residential units whether or not the resident is paying for the rental unit or a business is paying for the rental unit. The person(s) living in the unit are named as the tenants on the rental agreement and if another entity is paying for the rental unit, we have an additional agreement or addendum that covers their role. 

Our residential rental agreement has some terms that prohibits certain types of businesses from operating from the rental unit. Your property may or may not be zoned for certain businesses and industries. Parking may or may not be adequate. Electric service may or may not be adequate. It is important to know what the business will need and if they want to do any modifications to your house. Will a business operating from the home impact the neighbors? If so, in what way? 

You need to ask many questions. You need to know what type of business will be operating out of your home. If you decide to make your home a commercial property instead of a residential property, then make sure you are in compliance with local ordinances. Commercial properties would have a different type of lease than residential properties. Also, check with your insurance agent, as the change in use could impact your insurance needs and coverage.

Originally posted by @Marcia Maynard :

We use the same rental agreement for our residential units whether or not the resident is paying for the rental unit or a business is paying for the rental unit. The person(s) living in the unit are named as the tenants on the rental agreement and if another entity is paying for the rental unit, we have an additional agreement or addendum that covers their role. 

Our residential rental agreement has some terms that prohibits certain types of businesses from operating from the rental unit. Your property may or may not be zoned for certain businesses and industries. Parking may or may not be adequate. Electric service may or may not be adequate. It is important to know what the business will need and if they want to do any modifications to your house. Will a business operating from the home impact the neighbors? If so, in what way? 

You need to ask many questions. You need to know what type of business will be operating out of your home. If you decide to make your home a commercial property instead of a residential property, then make sure you are in compliance with local ordinances. Commercial properties would have a different type of lease than residential properties. Also, check with your insurance agent, as the change in use could impact your insurance needs and coverage.

 Thank you for the reply!  The business is quite small and there is only one person doing computer work.  Occassionally, they could have a guest or two in town that would be able to stay at the home instead of getting a hotel.   Thanks for your input!