What characterizes a residential lease?

A residential lease is fundamentally characterized as a contract for living space rental. This type of agreement specifically pertains to the leasing of properties that are intended for individuals and families to reside in, such as apartments, houses, or condos. The key aspect of a residential lease is that it provides the tenant with the right to occupy a living space, which is distinct from other types of leases that may be designed for business purposes or commercial activities.

In contrast, leases that pertain to business properties or require a commercial license have different regulations, terms, and purposes. For example, a commercial lease typically details terms suited for businesses, such as longer terms and provisions specific to business use. Furthermore, while some residential leases may indeed be shorter in duration compared to commercial leases, this is not a defining characteristic of a residential lease. The primary identifying feature is its role as a legal contract that allows individuals or families to rent a place to live. This fundamental definition distinguishes it from other leasing types and reflects the essence of what a residential lease represents in real estate practice.