What is Building Lease Drafting?
A building lease is a legal contract between a landlord and tenant. It outlines all the important terms governing their working relationship. It needs to be clear and specific so that there’s no confusion which could result in disputes.
If you need to draft a building lease, read the rest of this article to learn what key terms should be included, how to draft it for accuracy and transparency, and how a lawyer can help you with the building lease drafting process to give you peace of mind.
What are Key Terms in a Building Lease?
To ensure a building lease is comprehensive, it should provide clarity on a range of key terms.
- Premise use. This section describes what activities will be conducted on the property.
- Payment. This includes rent and fees, such as utility costs. It should also include information about security deposits.
- Repairs and maintenance. The agreement must detail which party will handle repairs and upkeep. This ensures both parties know their duties.
- Lease duration. This clarifies how long the lease will last and provides the opportunity to renew it.
- Alterations. If the tenant is allowed to make changes to or improve the property, there should be details, such as what alterations are allowed or prohibited.
- Property description. This must provide details about the property, such as its physical address and what areas of the property are being leased.
What are Tips for Drafting a Building Lease?
Once you’ve included core terms in your building lease, you should also consider additional information that will help you navigate the landlord-tenant relationship. Here are some things to include.
Specify Party Details
A building lease is between a landlord and tenant. Provide both of their legal names, registration numbers, physical addresses, and contact information. Make sure all the information is accurate so that you specify who is legally bound to the contract terms.
Explain Rental Amount Details
It’s not enough to only state what rental amount should be paid monthly. You want to clarify when it should be paid and approved payment methods for clarity.
Be Transparent about Deposits
You want to provide details about the deposit amount and how it will be held until its return. This section should also specify what conditions will trigger the release of the deposit.
Conduct a Cost Breakdown
There are various expenses that apply during building leases, such as operating and utilities costs. Specify in the lease who is responsible for water, power, and other costs, to prevent disputes.
Specify Unauthorized Property Usage
While the building lease might specify what the commercial property can be used for, you should also state unauthorized uses to prevent legal or financial issues.
Include a Subletting Clause
You should specify if the tenant can sublet the property to a third party or not. If they can, there should be specific conditions outlined for how and when this can happen.
Do You Need a Lawyer to Draft a Building Lease?
You don’t always require help from a lawyer to draft a building lease, such as if the lease is simple and the property is a small residential building.
However, there are times when it’s in your best interest to hire a lawyer for building lease drafting. These include if the lease is for a commercial building, the lease has a long duration, there are complex provisions, or you want peace of mind that all terms are clear and legal.
There are various risks involved with not hiring a lawyer, such as increasing your risk of disputes or not being legally compliant, which can result in issues down the line.
A lawyer can help you by:
- Drafting the building lease so that it’s compliant with all relevant laws and zoning regulations.
- Defining both parties’ rights and responsibilities. They’ll clarify what’s expected of you so that you reduce the risk of potential disputes.
- Customizing the building lease to your specific situation and property requirements.
- Assessing what risks you might face in the future and making provisions for them in the document. For example, they’ll include insurance and liability clauses to reduce your legal risks.
- Negotiating with the other party on your behalf if you need more favorable contract terms.
Where to Get a Building Lease Drafting by a Lawyer
If you’re looking to hire a qualified lawyer for assistance with drafting a building lease, you can connect with a skilled lawyer on an online legal marketplace, such as ContractsCounsel.
ContractsCounsel is one of the largest online legal marketplaces that gives you access to a network of vetted lawyers. They have the expertise and experience to help you draft a legally-sound and transparent building lease to protect your interests.
Here are the easy steps to follow when requesting that a lawyer draft your building lease:
1. Go to the ContractsCounsel marketplace, where you can post your project for free. Include a few details of why you require the contract or the property being leased so you’ll be directed to the best lawyer.
2. Wait for lawyer bids. You’ll receive multiple bids from lawyers directly on the platform who can assist you.
3. Once you receive the lawyer bids, you should review the lawyers' profiles. There’s lots of info on the platform to help you choose the best lawyer, such as their location, client ratings, years of experience, and field of expertise.
4. Connect with a lawyer you think is best suited to your requirements and hire them to draft a legal and clear building lease.
