Salon downstairs, apartment upstairs. Why do the leases look so different?
My first rental closes in six weeks so I'm not buying this, but my agent sent me a listing to look at as a comparison and I can't make sense of it. Small two story, a hair salon on the ground floor and one 3BR apartment above it. $189k.
The apartment lease is one page and looks like every residential lease I've read while I've been learning screening. The salon lease is eleven pages, says the tenant pays "their pro rata share of operating expenses," and has a section about the tenant maintaining their own HVAC unit.
So the commercial tenant is paying rent plus a share of the building's costs, and the residential tenant just pays rent? Is that normal or is that a good lease someone negotiated well? And if the salon leaves, does the space just sit there? I don't know what I'd do with an empty salon.