A lease is a long promise: you'll pay a specific amount, on a specific date, for a specific space, for a specific length of time. Most disputes come from what the lease doesn't say, or from clauses buried past page 20 that flip the risk to you.
First: which kind of lease is this?
Residential leases are heavily regulated. Many landlord-friendly clauses are unenforceable in your state regardless of what the lease says. Commercial leases are treated as arms-length business contracts: whatever you sign, you own.
If it's commercial, the burden of review is much higher. There is no consumer-protection safety net.
Residential: the 5 clauses to check
1. Rent, due date, late fees
How much, by when, and what happens if late. Late fees over 5 to 10 percent of rent are often unenforceable, but you don't want the fight.
2. Security deposit
How much, held where, returned when. Most states cap the deposit (often 1-2 months) and require return within 14-30 days with an itemized deduction list. If the lease says "at landlord's discretion," push back.
3. Term and renewal
Fixed term or month-to-month? What happens at the end: auto-renew, month-to-month rollover, or vacate? How much notice is required from each side?
Auto-renewal for another full year unless you give 60+ days notice. Miss the window and you're locked in another 12 months. Ask for month-to-month rollover or a shorter notice window.
4. Repairs and maintenance
Who fixes what, and who pays. Landlord is usually on the hook for structural, plumbing, electrical, HVAC, and appliances they provided. Watch for clauses shifting all repairs to the tenant.
5. Early termination
Can you break the lease? At what cost? Standard: 2 months rent as an early termination fee. Bad: full remaining rent, or nothing (the landlord decides case by case).
Commercial: the 7 clauses that decide the deal
1. Base rent + escalation
The number you actually pay. Escalation clauses raise rent yearly, either by a fixed percent (3 percent is common) or by CPI. Uncapped CPI can move rent 8 to 10 percent in a high-inflation year.
2. CAM (Common Area Maintenance)
Your share of the building's operating costs on top of base rent. Can run 15 to 40 percent of base rent. Ask for a CAM cap and the right to audit the landlord's expenses annually.
Uncapped CAM with no audit right. Landlords can pass through anything from lobby renovations to management fees. Push for a cap (e.g. no more than 5 percent increase year over year) and audit rights.
3. Personal guarantee
Makes you personally liable even if your company signs the lease. If the business closes, the landlord can come after your personal assets. Try to negotiate a "good-guy guarantee" that caps liability if you vacate properly with notice.
4. Use restrictions
What you're allowed to do in the space. "Retail only" or "office use only" limits your options if your business pivots. Ask for the broadest use clause the landlord will accept.
5. Assignment and subletting
Can you transfer the lease or sublet the space? Landlord consent "not unreasonably withheld" is the fair standard. "Sole discretion" means the landlord can say no for any reason.
6. SNDA (Subordination, Non-Disturbance, Attornment)
What happens if the building's lender forecloses or the building sells. A proper SNDA lets you stay on the same terms. Without one, a new owner can terminate your lease.
7. Renewal option
Do you have the right to extend the lease? At what rent? "Market rent to be determined" is a coin flip. Push for a defined formula (e.g. lower of market rent or previous rent plus 3 percent).
The 60-second checklist
- Total monthly cost including any CAM, taxes, and insurance passed through?
- How much can rent rise per year, and is there a cap?
- What's the deposit and when is it returned?
- How and when can each side end or not renew the lease?
- Who pays for repairs, and where's the line?
- Is there a personal guarantee, and is it limited?
- Are you allowed to sublet or assign?
- What happens if the building sells or the lender forecloses?
Upload the lease, get a clause-by-clause plain-English read in about an hour with the risks flagged and comparable-lease context. $1 to try. Not legal advice: a structured second opinion before you sign or take it to a lawyer.