Rental Lease Agreement Cost

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What does a rental lease agreement cost? This is a question often asked by landlords who are planning on renting out a property they own. Let’s explore this question and review some general information about rental lease agreements and how they work.

How Much Does a Rental Lease Agreement Cost?

A rental lease agreement is a legally binding contract between a landlord and a tenant. In the lease agreement, among other provisions, the tenant agrees to pay the landlord a set monthly rate for use of the property.

Rental lease agreements are most often seen for residential properties, like houses and apartments, but they can also be used for commercial properties like office space or a shop for a business.

Rental lease agreements are important documents when renting property. This contract protects both the landlord and the tenant and facilitate a successful renter relationship between the two parties. A lease agreement can be vital in avoiding disputes and resolving a dispute should one occur.

The landlord is typically responsible for providing the lease agreement and many landlords choose to hire an attorney to help draft this essential document. Without a specific and legally binding lease agreement, landlords can be left open to huge risks like property damage.

An experienced real estate attorney will be able to draft a rental lease agreement that protects a landlord and their property and abides by all applicable laws so it can hold up in court.

Based on ContractsCounsel’s marketplace data, the average cost of a project involving a rental lease agreement is $568.05.

What’s Included in a Rental Lease Agreement?

Depending on the type of rental lease agreement, the contract will need to include specific provisions to make sure it accomplishes the goal of protecting the landlord. Rental lease agreements can be customized to be as specific as the parties’ desire, can be negotiated, and can include custom terms and conditions.

At a minimum, the following provisions should be included in any rental lease agreement:

  • Party Information. The contract needs to include the names and addresses of both the landlord and the tenant. If either party is a business, the business information needs to be included.
  • Property description. The property description should include the address of the building, square footage, amenities, and features that are available to the renter like parking.
  • Duration of the lease. Leases need to include a duration. Most residential leases are one year leases however some other duration options include six month, seasonal, or month-to-month. Commercial leases are typically three year agreements. This clause should also include the date the lease begins and whether there will be a renewal option when the lease expires.
  • Rental price and required deposits. The lease should clearly state the monthly rental rate and the date rent is due each month. The lease should also include whether a deposit is required and if so, the amount and how that deposit will be returned at the end of the lease.
  • Late Fee/Penalty. The lease agreement needs to address what happens if the tenant doesn’t pay rent on time. Most landlords charge a late fee after 7 days of non-payment.
  • Utilities. Some landlords lump utilities in with the monthly rental rate while others expect the tenant to handle their own utility bills. These terms should be clearly laid out in the agreement so the renter knows what bills they must pay.

If you are unsure what provisions your rental lease agreement needs, contact a real estate attorney who can either draft a completely new rental agreement or review your current agreement.

Types of Rental Lease Agreements

There are several types of rental lease agreements and the agreement used depends on the type of property and the goals of the landlord and the tenant.

Some common types of rental agreements you may see include:

  1. Fixed-term lease
  2. Automatic renew lease
  3. Month-to-month lease
  4. Standard residential rental lease
  5. Short-term or vacation rental lease
  6. Sublet lease
  7. Room rental lease
  8. Commercial lease
  9. Land lease
  10. Rent-to-own lease

Examples of Rental Lease Agreement Projects

Rental Lease Agreement Drafting Services

Many landlords choose to hire a real estate lawyer to draft their rental lease agreement. Any mistakes or overlooked provisions could leave a landlord open to legal and financial risk. An experienced real estate attorney will know which clauses must be included to protect the landlord’s interests and avoid civil disputes.

When a landlord hires an attorney for drafting services, first there is usually a consult. The lawyer will meet with the landlord to learn about the type of property and what the landlord wants included in the lease. Then the lawyer will draft a lease that the landlord can use.

Rental Lease Agreement Review Services

Rental lease agreements are typically provided by the landlord so without an attorney, a tenant may be at a disadvantage in the rental deal and have a more difficult time negotiating terms.

Some renters choose to hire their own real estate attorney to review the rental lease agreement to ensure the terms are fair, the renter’s interests are protected, and they understand all provisions included in the contract.

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Rental Lease Agreement Drafting Cost

Rental lease agreement costs can vary based on the document’s length, complexity, and how many custom terms need to be included in the contract.

ContractsCounsel’s marketplace data shows the average rental lease agreement drafting costs are $625 across all states and industries.

Rental Lease Agreement Review Cost

If a renter hires a lawyer to review a lease agreement, they will incur legal fees. The lawyer will charge for their time and legal knowledge reviewing the contract and meeting with their client.

ContractsCounsel’s marketplace data shows the average rental lease agreement review costs are $485 across all states and industries.

How Do Lawyers Charge for Rental Lease Agreements?

Hourly Rates for Rental Lease Agreements

An hourly rate fee structure is the most common fee structure used by real estate attorneys. Using this fee agreement, the lawyer will provide a client with their hourly rate, and if the client approves, begin working on the legal project. At the end of the job, the lawyer will bill the client for the number of hours spent working on the case.

The marketplace data for ContractsCounsel shows the average hourly rate for a real estate lawyer ranges from $200 - $350 per hour.

Flat Fee Rates for Rental Lease Agreements

When a client hires an attorney for a specific purpose, like drafting rental lease agreement, the attorney may choose to use a flat fee rate instead of an hourly rate.

To come up with a flat fee rate, an attorney will typically estimate the time it takes to complete a project and then apply their hourly rate. While clients tend to prefer a flat rate because they know the cost of their legal fees up front, lawyers can sometimes run into trouble. If a task takes longer than anticipated, a lawyer may not be compensated for their time.

ContractsCounsel's marketplace data shows the average flat fee rate for a rental lease agreement is $568.05.

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