Drafting and modifying commercial lease agreements is a complex process. An experienced lawyer who knows Massachusetts law is an essential ally at all steps of the process. Without someone to review the necessary documents, it may not be possible to fully understand the implications of what you’re signing until it’s too late.
At Calabrese Law Associates, we are aware of the everyday aspects of owning and operating rental and commercial real estate property, such as management and leasing. Our commercial real estate leasing attorneys are based in Boston and serve clients throughout Massachusetts, offering effective and efficient legal services for a reasonable fee. We represent landlords and tenants in all types of leasing arrangements, including retail and office space, apartments, warehouse and ground leases, and subleases.
Types of Rental Lease Agreements in MA
A leasing agreement between you and your landlord obligates both of you to specific commitments. You may need a co-signer if you do not have much credit history or are under a particular age. The following are some common types of leasing agreements.
Commercial Lease
Commercial lease agreements in Massachusetts apply to commercially zoned properties such as offices, retail spaces, and restaurants. Commercial leases contain many details about how you can use the property for your business.
When a landlord and a commercial tenant enter into a lease agreement, there’s usually a lot more flexibility for them to create and define the agreement than there is in the residential rental market. For example, while tenant laws protect residential tenants, businesses don’t have the same stability. Tenants and landlords must follow the terms in a commercial lease, even if it’s not in the tenant’s best interest.
That’s why business owners should work with a real estate lease attorney before signing a commercial lease. You want to verify the agreement will benefit your company and won’t leave you responsible for excessive fees or obligations.
Commercial leases tend to fall into two categories — gross and net. A gross lease is all-inclusive, meaning the rent covers everything, from insurance to utilities.
A net lease can give a tenant more freedom, but tends to have higher costs. The tenant pays the landlord a monthly rent and usually also has to set up and pay for utilities. A net lease might allow a tenant to make more changes to the property itself.
Residential Lease
A residential lease provides property rights to a tenant for daily living. For a tenant, the most critical obligation of a leasing agreement is the length of time the lease is in effect. By signing a lease, you agree to rent an apartment for a specific period.
Residential lease agreements in Massachusetts protect the tenant and the landlord and need to follow the state’s tenant laws. When you and a landlord sign a lease for a home or apartment, you agree to pay the set monthly fee for the duration of the lease. As long as you follow the rules of the lease and pay your rent, the landlord can’t evict you from the home while the lease is in effect.
Otherwise, Massachusetts doesn’t have a set residential lease agreement or requirements for the lease. Any residence you rent needs to be “safe and habitable,” meaning it needs to have heat, water, and a kitchen. The landlord is responsible for maintaining the building in good condition. The residence should also be free from rodents and pests.
When you sign a lease, you are responsible for paying the monthly rent for the entire agreement, even if you don’t live in the home or apartment.
Short-Term Lease
While one year is the standard rental term for many leases, it is possible to enter into a lease agreement for less time. A short-term lease typically states a fixed monthly rate for your lease’s entire duration, whether it’s three or six months. If you are planning to stay in a rental for a brief period, you may want to obtain a short-term lease. Remember, some landlords might not offer this option.
Tenancy-at-Will
Sometimes called a month-to-month lease, tenancy-at-will means you might not have a formal lease agreement with a landlord. You can leave the property when you wish. Similarly, the landlord can ask you to leave at any time. Usually, you or the landlord need to give each other at least 30 days’ notice before terminating the lease.
With tenancy-at-will, you might have a written or verbal agreement with a landlord. You pay the landlord a rental fee, usually monthly. Often, the monthly rent includes utilities. If the landlord wants to raise the rent, they can do so, but need to give you at least 30 days’ notice and the option of terminating the lease.
What Are Some Common Legal Issues That Could Arise?
An attorney should prepare and review your real estate lease agreement. Commercial lease agreements tend to offer fewer legal protections than residential leases, which ensure safe living conditions for a tenant. Here are some issues that may come up.
- A new roommate moves in: If you want to add a roommate to your lease, this can lead to legal issues. Seek your landlord’s approval and speak to your potential roommate about their commitment to living with you, particularly the financial responsibility.
- Your roommate leaves: Legal issues can also arise when a roommate moves out. If your roommate leaves before your lease ends, you may be responsible for paying the rent.
- You want to break a lease: As a lease agreement is a legally enforceable contract, it may be tricky to break it. Doing so can lead to legal issues depending on your obligations as the tenant.
- You cannot afford to pay your rent: A decline in business may prevent commercial tenants from paying their rent.
Regardless of the type of lease agreement you have, be sure you fully understand and can meet the contract obligations. If you want to end your leasing agreement early, read the agreement carefully to determine whether you will face a penalty for breaking the lease or if you have a legal justification to terminate the lease early. You may owe a significant fee, lose your security deposit, or owe rent for the remaining length of the lease.
Our Services
Our residential and commercial lease attorneys in Massachusetts possess the knowledge and skill necessary to negotiate advantageous leases for landlord and tenant clients. Persons and businesses who retain Calabrese Law Associates to review and prepare their lease agreements can focus on their revenue-producing activities without the worry of negative financial implications or expensive litigation when disputes arise. Our services include the following.
- Drafting, negotiating, and reviewing lease agreements: This service is available for all property types, including shopping centers and retail facilities, single and multi-family apartment buildings, commercial properties, offices, industrial properties, warehouses, and mixed-use properties.
- Assignment and subletting documentation: This service includes negotiation of leases, review of underlying leases, or purchases of fixtures, equipment, and inventory.
All services are available for commercial and residential leases. As the concept of leasing versus owning property becomes more practicable given the current lending environment, more varied and complex financing arrangements become common. As a result, the specialized legal knowledge only an experienced real estate leasing attorney can provide becomes invaluable.
At Calabrese Law Associates, our commercial property lease lawyers are well-positioned to advise our clients on the benefits and disadvantages of their particular leasing arrangements. Moreover, as new leasing structures emerge and develop, so do our capabilities to meet the real estate requirements of our clients.
Helping You Succeed in a Competitive Market
The real estate industry in Boston and throughout Massachusetts is more competitive now than ever before. Owners, contractors, managers, and other stakeholders need sound legal advice in order to stay profitable and protect their long-term interests. That’s where Calabrese Law Associates come in.
Our commercial real estate leasing attorneys are available for all leasing-related matters. Leveraging our years of experience serving some of the state’s largest developers, we can find creative solutions to pressing problems. We’ll also complete the complex legal legwork necessary to help you make informed, advantageous decisions going forward.
Contact our real estate leasing attorneys in our downtown Boston office at Calabrese Law Associates today to learn more about how we can help you.
*This publication and its contents are not to be construed as legal advice nor a recommendation to you as to how to proceed. Please consult with a local licensed attorney directly before taking any action that could have legal consequences. This publication and its content do not create an attorney-client relationship and are being provided for general informational purposes only.
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