ContractsCounsel Logo

Draft Lease Agreement

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 7,494 reviews
Home Blog Draft Lease Agreement

Jump to Section

Need help with a Lease Agreement?

Create a free project posting

What Does it Mean to Draft a Lease Agreement?

Drafting a lease agreement means writing a lease agreement. A lease agreement is a binding legal contract between a tenant and a landlord that gives them the right to live in the property for a fixed period of time.

Leases can also be for commercial use. A commercial lease allows someone to use a landlord’s property for business purposes for a specific period of time.

Before renting, you must enter a legally binding contract with the property’s owner. As a landlord, you must have a contract outlining the duration of the lease, terms, and conditions, and an agreement to lease from the tenants.

Here is an article about leases and their structure.

Types of Leases

There are several types of leases, but they can be divided into two main categories:

  1. rental lease agreement
  2. commercial lease agreement

These leases can vary, especially in commercial leases where someone seeks to operate their own business on another person’s property.

Absolute Net Lease

An absolute net lease requires the tenant to pay their fixed rent plus all associated expenses, including maintenance and utilities. In a net commercial building lease, you would be responsible for maintaining the property and its grounds, including its roof and foundation. Failure to maintain the property could result in a breach of contract, fines, or a lawsuit.

In residential leases, absolute net terms are not as common. Usually, tenants are not responsible for any necessary repairs or routine maintenance. Still, you may be responsible for repairs brought on by your actions.

Triple Net Lease

The tenant agrees to pay for the rent, property taxes, utilities, insurance, and maintenance in a triple net lease. This is one of the most expensive leases a tenant can sign as it comes with the most significant amount of financial liability.

Triple net leases offer greater freedom to tenants and landlords, and there may also be caps on taxes and insurance increases. Also, the landlord is the least active in the property’s management with this type of lease, so it can almost be like owning the property yourself.

Modified Gross Lease

A modified gross lease changes over time. Initially, the tenant agrees to pay a base rent. Still, they take on additional costs through taxes, insurance, utilities, and repairs. Both the landlord and tenant are responsible for additional costs.

In some cases, the tenant may take on 50% of the responsibility, while in others, they only take on 25%.

When signing a modified gross lease, it is important to consider the limitations placed on how much a landlord can shift financial responsibility to the tenant. This can prevent them from being charged large amounts or drastically increasing their dues without notice.

Full-Service Lease

A full-service lease is an all-in-one agreement where the tenant pays a flat rate for rent and all property expenses. In commercial leases, this can also include insurance for the building. Renters may still hold their insurance policies in residential lease agreements. Requirements vary.

Full-service leases grant clients the most accessible payment model but can also mean a higher base rent. This is because landlords will factor the cost of maintenance, utilities, and taxes into the base figure.

Here is an article with more information about different types of lease agreements.

Meet some lawyers on our platform

Ryenne S.

434 projects on CC
View Profile

Sara S.

40 projects on CC
View Profile

Zachary J.

181 projects on CC
View Profile

Brian R.

1 project on CC
View Profile

How Do You Draft a Lease Agreement?

You can draft a lease agreement independently or enlist the services of a professional attorney. Working with a real estate lawyer can help you draft a lease agreement tailored to your property.

If you decide to draft your lease agreement, you will need to be certain it contains all the legal terms and clauses to be seen as a binding contract in your state. Failure to include the necessary details can render a lease void, even if you and the tenant agree to its terms.

Working with a lawyer for commercial lease services can help you draft the right lease for your needs. It can also help institute an addendum to lease, a modified version of the original contract.

Here is an article with ContractsCounsel’s guide on how to write a lease agreement for more details.

What Should Be Included in a Lease Agreement?

A lease agreement should include several key elements:

  • A description of the property. Include the property’s full address and details relating to its size and structure. It should also be noted whether this property will be rented for residential or commercial purposes.
  • The names of the landlord and tenant. Identify the landlord, management company (if applicable), and tenant(s) by their legal names.
  • Duration of the agreement. Specify when the lease will go into effect, how long it will last, and how much time the tenant will have to renew the lease.
  • Early termination clause. To avoid abandoned properties and lost rent, landlords can write stipulations about terminating the lease. However, tenants will have to give prior notice and possibly pay off the remainder of the lease or a percentage of it before they can legally end the agreement before its expiry date.
  • Consequences for non-payment. Make sure the lease agreement specifies what penalties the tenant will face if they fail to pay their rent or other expenses and how long they will have to make a payment before facing legal consequences. Failure to pay can also result in the early termination of the lease and a subsequent eviction notice from the landlord.
  • Maintenance requirements and modifications. The landlord may require the tenant to perform certain maintenance on their behalf, and they can require them to seek approval before they make any modifications to the property. The landlord can also require the tenant to only work with an approved contractor when enlisting repair services or making changes to the property.

There are rental rules in every state that protect tenants from being evicted without warning, even in the event of non-payment. Therefore, it is important to ensure that your lease agreement is fully compliant with the rental laws in your state.

Here is an article about how to write a lease agreement and landlord-tenant laws by state.

Why Do I Need a Lease Agreement?

You need a lease agreement to rent a property to someone else legally. Without a lease agreement, they are not legally obligated to pay you rent, and they can leave the property anytime without notice.

Lease agreements also help landlords enforce certain terms for tenants, such as not smoking on the property or owning pets.

Here is an article with 27 lease agreement clauses that help protect landlords.

Who Can Draft a Lease Agreement?

Real estate lawyers can draft a lease agreement per your state's rules and requirements. Working with a lawyer is the most efficient way to draft a legal lease agreement for residential and commercial landlords.

You can also use a lease agreement template online, then have a lawyer review it before the assignment lease is issued to the tenant.

Here is an article about how to review a lease agreement.

How Much Does it Cost to Draft a Lease Agreement?

According to ContractsCounsel’s market, the average lease agreement costs $485. This figure reflects lease agreements across all U.S. states, so you can expect to spend around $500 to draft a lease agreement for your property.

Post a project in ContractsCounsel’s marketplace to receive flat fee bids from lawyers for your project. All lawyers have been vetted by our team and peer-reviewed by our customers for you to explore before hiring.

Need help with a
Lease Agreement?

Create a free project posting

Meet some of our Lawyers

Kristen R. on ContractsCounsel
View Kristen
4.9 (29)
Member Since:
January 10, 2022

Kristen R.

Freelance Attorney
Free Consultation
15 Yrs Experience
Licensed in WY
University of Wyoming

Transactional and Employment Attorney and Small Business Owner. I do inside counsel work from the outside. I demystify the law for my clients.

Ryenne S. on ContractsCounsel
View Ryenne
4.9 (253)
Member Since:
October 11, 2022

Ryenne S.

Principal Attorney
Free Consultation
Chicago, IL
13 Yrs Experience
Licensed in IL
DePaul University College of Law

My name is Ryenne Shaw and I help business owners build businesses that operate as assets instead of liabilities, increase in value over time and build wealth. My areas of expertise include corporate formation and business structure, contract law, employment/labor law, business risk and compliance and intellectual property. I also serve as outside general counsel to several businesses across various industries nationally. I spent most of my early legal career assisting C.E.O.s, General Counsel, and in-house legal counsel of both large and smaller corporations in minimizing liability, protecting business assets and maximizing profits. While working with many of these entities, I realized that smaller entities are often underserved. I saw that smaller business owners weren’t receiving the same level of legal support larger corporations relied upon to grow and sustain. I knew this was a major contributor to the ceiling that most small businesses hit before they’ve even scratched the surface of their potential. And I knew at that moment that all of this lack of knowledge and support was creating a huge wealth gap. After over ten years of legal experience, I started my law firm to provide the legal support small to mid-sized business owners and entrepreneurs need to grow and protect their brands, businesses, and assets. I have a passion for helping small to mid-sized businesses and startups grow into wealth-building assets by leveraging the same legal strategies large corporations have used for years to create real wealth. I enjoy connecting with my clients, learning about their visions and identifying ways to protect and maximize the reach, value and impact of their businesses. I am a strong legal writer with extensive litigation experience, including both federal and state (and administratively), which brings another element to every contract I prepare and the overall counsel and value I provide. Some of my recent projects include: - Negotiating & Drafting Commercial Lease Agreements - Drafting Trademark Licensing Agreements - Drafting Ambassador and Influencer Agreements - Drafting Collaboration Agreements - Drafting Service Agreements for service-providers, coaches and consultants - Drafting Master Service Agreements and SOWs - Drafting Terms of Service and Privacy Policies - Preparing policies and procedures for businesses in highly regulated industries - Drafting Employee Handbooks, Standard Operations and Procedures (SOPs) manuals, employment agreements - Creating Employer-employee infrastructure to ensure business compliance with employment and labor laws - Drafting Independent Contractor Agreements and Non-Disclosure/Non-Competition/Non-Solicitation Agreements - Conducting Federal Trademark Searches and filing trademark applications - Preparing Trademark Opinion Letters after conducting appropriate legal research - Drafting Letters of Opinion for Small Business Loans - Drafting and Responding to Cease and Desist Letters I service clients throughout the United States across a broad range of industries.

Don G. on ContractsCounsel
View Don
4.9 (21)
Member Since:
March 1, 2021

Don G.

Attorney at law
Free Consultation
Lafayette, LA
22 Yrs Experience
Licensed in TX
Texas Tech School of Law

Texas licensed attorney specializing for 22 years in Business and Contract law with a focus on construction law and business operations. My services include General Business Law Advisement; Contract Review and Drafting; Legal Research and Writing; Business Formation; Articles or Instructive Writing; and more. I am able to draft and review contracts, and have experience with, contract law and business formation in any state. For more insight into my skills and experience, please feel free to visit my LinkedIn profile or contact me with any questions.

Craig M. on ContractsCounsel
View Craig
5.0 (3)
Member Since:
August 2, 2021

Craig M.

Free Consultation
7 Yrs Experience
Licensed in ME
New York Law School

I have been practicing law for more than 4 years at a small firm in York County, Maine. I recently decided to hang my shingle, Dirigo Law LLC. My practice focuses mostly on Real Estate / Corporate transactions, Wills, Trusts, and Probate matters.

Melissa G. on ContractsCounsel
View Melissa
5.0 (1)
Member Since:
August 5, 2021

Melissa G.

Managing Attorney
Free Consultation
19 Yrs Experience
Licensed in DC, IL, OH
University of Michigan

My name is Melissa “Mel” Green and I provide legal counsel to entrepreneurs, start-ups, and small businesses that is clear, concise, and focused on the practical impact of decisions. As trusted legal counsel, I proactively identify risks, and develop effective, practical solutions that protect my clients businesses, create positive outcomes, and help mitigate legal exposure. My areas of expertise include business formation, contract law/commercial transactions, healthcare law, and intellectual property. I also provide services as an outside general counsel or “fractional general counsel”. Prior to starting my own law firm, I spent the majority of my career in-house at large and small corporations, both for profit and not-for-profit, working with senior and executive management, in addition to other stakeholders at a variety of management levels. to proactively identify and address risks, mitigate legal exposure, streamline processes, lead persuasive negotiations that are integral to ensuring positive outcomes for the organization, and deliver hands-on, spectacular client service. There came a time when I realized that individuals and smaller entities were not receiving the same level of legal support and guidance as mid-size to large companies and as a result, individuals and small businesses were not growing and sustaining on the same level. I wanted to use my expertise to provide those that were underserved by the legal market with competent counsel at an affordable price. With the increasing number of new businesses, I knew that I could make a difference to those that needed legal guidance but were putting it off in fear of “Big Law” prices. I love to “partner” with my clients, get a deep understanding of their business, develop lasting professional relationships and watch them prosper. I want to find a way to help my clients maximize the reach, value and impact of their business. Services that I have provided over the course of my career: (i) reviewing, drafting and negotiating commercial agreements (leases, MSAs and SOWs, consulting services agreements, confidentiality agreements, SaaS agreements, coaching agreements, independent contractor agreements, coaching agreements, photographer agreements, waivers and releases, licensing agreements, etc.), (ii) business formation (operating agreements, written consents, bylaws, etc.), (iii) preparing policies and procedures for businesses in highly regulated industries, (iv) conducting federal trademark searches and filing trademark applications/preparing trademark opinion letters after conducting appropriate legal research, and (v) general business counsel.

Tim M. on ContractsCounsel
View Tim
Member Since:
August 3, 2021

Tim M.

Managing Partner
Free Consultation
Cambridge, MA
25 Yrs Experience
Licensed in MA, NY
Boston College Law School

Tim has 20 years of experience representing a wide variety of emerging and established companies in the technology, software, bitcoin and professional services industries. He works directly with his clients’ executives and boards of directors on corporate, intellectual property, and securities law issues. Recently, Tim has advised clients on Series A and Series B financings, corporate structuring, complex video licensing agreements, and structuring new hedge funds. Tim previously served as Forrester Research, Inc.’s General Counsel and Secretary where he was chief legal officer, led the company’s legal group, and managed the company’s legal and regulatory affairs. Tim played an integral role in the company’s initial public offering in 1997 and coordinated its secondary offering in 2000. He directed the legal process in the company’s acquisitions of Giga Information Group, Inc., Fletcher Research and Forit GmbH and oversaw over $125million in transactions. He also managed the company’s intellectual property assets. Tim is admitted to practice in Massachusetts and New York. Tim holds a Juris Doctor degree from the Boston College Law School and a Bachelor of Arts degree from Trinity College

Spencer W. on ContractsCounsel
View Spencer
Member Since:
August 4, 2021

Spencer W.

Free Consultation
New York
12 Yrs Experience
Licensed in NY
Columbia Law School

I’m a New York based attorney with substantial experience in media and art law, corporate structuring and commercial contracts. For the past several years, I have been advising startups and new business on their legal needs, with a special focus on tech and entertainment.

Find the best lawyer for your project

Browse Lawyers Now
Learn About Contracts
See More Contracts
other helpful articles

Need help with a Lease Agreement?

Create a free project posting

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city