A lawyer for lease has additional expertise in dealing with matters related to analyzing, drafting, and counseling clients on lease contracts. In addition, lease agreement attorneys can also serve as an intermediary between a lessor and tenant to help ensure the contract between two people is mutually advantageous. Read on to learn about lease agreements and how an attorney can help you with a lease agreement.
What Does a Lawyer for Lease Do?
Whenever you wish to rent a residential or commercial property you hold for someone else to reside or work in, you must create a lease agreement. While the objective of this legal paper can be specific, drafting a lease agreement can be challenging. A lawyer for lease agreement acts as a counselor to lessors and tenants who negotiate their lease agreements.
Furthermore, lease attorneys are experienced in these domains and are specialists in deciding how agreements should be expressed. Their objective is to guarantee that people pay a reasonable price for the space they work from and that there are no traps for either party once the lease agreement is completed. Below are some prominent areas of a lawyer's expertise for a lease agreement:
Draft Accurate Commercial Lease Agreements
Before the lessor and lessee sign a commercial lease agreement, they must sign the Letter Of Intent (LOI). This letter of intent comprises all the required details regarding the property's square footage, monthly rent, the duration of the lease, termination policies, and more. Commercial lease attorneys can assist you in matching the commitments specified in the letter of intent versus the provisions specified in the lease contracts and modifying them if required.
Moreover, since precision is essential in a mutually profitable tenant-landlord relationship, business owners who work with commercial lease attorneys are far more likely to have a good experience.
A property lease always comprises facts about who is accountable for maintenance. Expenses associated with maintenance are usually paid individually from rent and can comprise the following:
- Parking lot maintenance
- Electricity throughout the facility
Since maintenance charges in these locations can be expensive, you must describe the detailed expectations in a lease. A lawyer for lease specializes in preparing and revising agreements to ensure it remains as comprehensive as possible.
What Do We Mean by a Lease?
A lease agreement is a documented contract that guards the property owner (lessor) and the lessee. It guarantees that the landlord meets their obligation to keep the property secure and inhabitable while guarding the lessor's investment (for instance, having the tenant responsible when they fail to pay their rent or cause harm) and protects both parties from risk as much as possible.
In addition, a lease agreement can also guard companies by restricting leasing property units in the same area or commercial hub to competing companies. Some leases are also naturally more intricate than others. For instance, a 5-year lease on a retail building will be much more uncomplicated than a 20-year lease on a commercial plant. Therefore, you should also draft a lease agreement according to the building owners' and tenants' exact needs and intended use. Below are some essential elements of a valid lease:
One of the primary questions lessees have when leasing a new unit is the rent. In addition, the monthly, quarterly, or yearly rent is the most important element in any lease agreement.
In addition, this section should explicitly express how much the tenant must pay as rent. It should also include details regarding delayed rent's repercussions, such as eviction or late fees.
Repair and Maintenance Obligations
When something damages or requires maintenance, who is accountable for the expense? Regarding residential lease contracts, the landlord is generally the one accountable. It is where the lease agreement comes in convenient to specify such obligations. Moreover, in rare cases, maintenance and repair expenses fall on the lessee's shoulders, and more reasonable rent is generally negotiated to pay.
Understanding the Type of Lease Agreements
There are three primary lease agreements types: commercial, residential, and equipment that is as follows:
Residential leases comprise family houses that are not used for profit. They are generally inclusive of real estate properties such as:
Commercial leases take place in areas that are used for trade purposes. Below are some examples of what a commercial lease is perfect for:
- Retail storefronts
- Commercial offices
Equipment leases are utilized when a company rents tools for its functions. Below are some examples of equipment leases:
- Industrial cooking equipment
- Heavy machinery
- IT or technical equipment
- Percentage Lease: A percentage lease is most distinctive in a commercial retail lease contract. It mandates a lessee to pay monthly ground rent and a portion of gross sales over a specified minimum payment.
- Incidental Expenses: Incidental expenditures on a lease agreement refer to the expenses of running and keeping the property. They are expenses added to the ground rent that either the tenant or landlord must spend. Instances include utilities, property taxes, insurance, common area maintenance, and repairs.
- Trade Fixtures: Trade fixtures are any objects the tenant chooses to install, which they can take with them when they leave the property. Generally, trade fixtures refer to inventory, furniture, and hardware. In addition, lease agreements should describe any assets tenants plan to take when they vacate. Usually, the clause defines the lessee's obligations for any damage installation or removal might cause.
- Subleasing: Subleasing or sublet clauses are utilized in lease contracts when the tenant contracts an unused area to another lessee. The subtenant lease contract is independent of the initial lease contract. Lessees cannot sublease a new room unless this provision exists to provide support.
- Exclusive Right: An exclusive ownership or exclusivity provision is particularly significant for lease agreements. This clause allows the tenant to be the only provider of a specific service or product.
- Taxes, Maintenance, and Insurance: TMI (Taxes, Maintenance, and Insurance) is a commercial lease contract term indicating indirect expenses. It is generally found in contracts where the tenant is accountable for paying some or all of the unexpected expenditures (i.e., triple net lease agreements or net, double net).
When legal expenses are required during a lease duration, your lease agreement can assist you in determining who pays for these expenditures. In addition, if you must evaluate a lease granted to you, it is better to hire our attorneys at ContractsCounsel to help you review and negotiate your lease agreement.