The Differences Between Commercial And Residential Lots In Leyte Palo

There are two types of lot, namely commercial and residential. Some people use these two terms interchangeably as if they hold the same definition. However, these two terms are actually different from each other. Residential lot is a property which derives its earnings from residential units like condominiums, apartment buildings, multi-families, townhouses, and co-ops. Commercial lot is one which earns its income from non-residential sources such as company office, retail space or even industrial tenants. To understand the difference between residential and commercial lots deeper, here are some of their differences:

Cost. To build a commercial building is way more costly than building a residential lot in Leyte Palo. While residential only needs a furnished place, commercial building should be provided with a classy and professional look. You need to spend more money to build commercial properties for you to create a good and conglomerate feedback from your possible customers.

Difference between leasing rates. The lease between a commercial lot and a residential lot differs a lot since they have different markets. Also, the following are some of the indicators of how the leasing rates between commercial and industrial lots vary:

1. A commercial lease lasts longer.
2. The legislation between the landlord and tenant relationship differs.

Time management. You don’t need to spend all your time meeting with your tenants, signing the leasing contracts and whatsoever when it comes to a commercial lot or property in Leyte Palo. This is because the residential property’s common lease usually lasts up to one to two years only while the commercial property would last from five to fifteen years.

Maintenance and repairs responsibility. The responsibility for the maintenance and repairs of the two buildings in Leyte Palo is quite different. In a commercial property, it would be the tenant’s responsibility to spend for the maintenance while in a residential property, it is the responsibility of the landlord. The maintenance expenditures would be up to 20 to 30 percent of the rent and it is quite a loss on the landlord’s side.

Either of the two properties, the residential or the commercial lot will be a successful business as long as you maintain the professional approach in dealing with your clients also.