The responsibilities for paying taxes and insurance can vary significantly depending on whether the lease is residential or commercial. Here’s a breakdown of the key differences and typical responsibilities:

Residential Leases

1. Property Taxes

   In residential leases, property taxes are generally the responsibility of the landlord. The landlord owns the property and is responsible for paying the taxes. This cost is often factored into the rental price.

2. Property Insurance

   The landlord typically maintains property insurance to cover the building itself. This insurance does not cover the tenant’s personal belongings.

3. Renter’s Insurance

   Tenants are usually encouraged, and sometimes required, to obtain renter’s insurance to cover their personal belongings and liability. This is separate from the landlord’s insurance and is the tenant's responsibility.

Commercial Leases:

1. Property Taxes: In commercial leases, it is common for tenants to be responsible for a portion of the property taxes. This can be structured in various ways, such as:

   • Triple Net Lease (NNN)

     The tenant pays a share of the property taxes, building insurance, and maintenance costs in addition to the base rent.

   • Gross Lease

     The landlord pays the property taxes, but this cost is usually included in the overall rent charged to the tenant.

2. Property Insurance

   Commercial leases often require tenants to carry property and general liability insurance for their space and business operations. Additionally, tenants may need to contribute to the building insurance through their lease terms.

3. Liability Insurance

   Tenants are typically required to obtain liability insurance to protect against claims arising from their business operations. This protects both the tenant and the landlord.

Summary

In summary, residential leases typically place the burden of property taxes and building insurance on the landlord, while tenants handle their own renter’s insurance. Commercial leases can vary but often require tenants to contribute to property taxes and insurance costs.

At the end of the day, however, the lease will control unless a statute or government regulation requires otherwise. So it is important that you carefully negotiate your lease.