Do I Need a Lawyer To Prepare a Lease Agreement?

When you sign a rental lease agreement, you are signing a contract. For many, the formality and seriousness of the agreement aren’t apparent because they are filling out and signing lease forms. They look standardized and feel like a cursory part of renting real estate. However, leases are legally enforceable agreements that can have lasting impacts on your tenancy. Having a lawyer involved when signing a lease can help both parties protect their rights and interests.

Benefits of Having an Attorney Draft the Lease Agreement

Hiring a real estate attorney to assist with preparing a commercial or residential lease agreement will provide several benefits. A lawyer dedicates their practice to a specific area of the law. Property owners looking to become landlords will benefit from a lawyer’s experience and knowledge of the local laws. 

The process of residential lease preparation is straightforward. A lawyer can help landlords reduce their legal risks while clearly defining each party’s responsibilities. They can also address unique situations, such as special terms to accommodate a tenant with specific needs, such as pet policies or early termination terms. A real estate attorney can customize the lease to address legal compliance challenges, term enforceability, and financial risks in commercial real estate. A lawyer can negotiate the terms to address conflicting positions between the parties and provide much-needed clarity for them. This can address the ambiguity and reduce the risk of conflict later.

Marc Lieberman is a real estate attorney for Kutak Rock in Scottsdale, Arizona. He explains that his clients are investors who understand the importance of using an attorney. But whether you are investing on a large scale or just one rental property, a real estate attorney can assist with drafting a lease. Lieberman points out that lawyers understand the approach and mindset of other legal professionals and can assist their clients in navigating the legal landscape while finding a mutually agreeable solution. “Dealing with lawyers from all over the world, with different standards of practice and different expectations, it’s always important to address the special interests of those lawyers and their clients in connection with every deal.”

How a Lawyer Helps Draft a Lease Agreement

The landlord and tenant should gather the necessary documents to prepare for working with a lawyer. This information will help the real estate lawyer prepare the correct documents for drafting a rental agreement. Before creating the document, the lawyer will speak with the landlord about specific key terms that must be included in the lease. These key terms will vary based on the type of property and the rental agreement the parties want to agree to. For example, a commercial lease will have different terms than a residential lease.

While lawyers have templates, they are used as a starting point for customizing each rental agreement. They will ensure the terms the parties want to include comply with the state law so they are enforceable. The lawyer will also discuss possible legal risks with their client. Then, suggest protective measures for the client to protect the landlord’s interests. This could include building late fees, eviction procedures, and conflict resolution steps into the lease.

Once the documents are prepared, the lawyer will review the agreement with the client. If changes need to be made, they will make those. Then, the lawyer can facilitate the lease signing by all parties.

Key Legal Provisions of a Lease Agreement to be Aware of

Landlords need to be aware of several legal provisions that make a lease agreement complete and enforceable. Start by reviewing the basic elements of the residential lease agreement.

• Security deposit amount
• Monthly rent
• Late sees
• Rent due date
• Lease duration
• Termination requirements
• Occupancy limits
• Statute-defined landlord responsibilities

Then, there are lease agreement terms that landlords can choose how they want to include. These are terms that landlord/tenant law is generally silent on. Landlords and renters have the freedom to negotiate.

• Pet policy
• Lease violation penalties
• Smoking policy
• Negotiation of landlord and tenant responsibilities
• Subletting policies
• Renewal procedures

Commercial lease agreements have a separate set of terms that define how the business tenant can use the property during the lease. One term of the lease tenant’s want in a commercial lease is usage rights. A business tenant does not want a direct competitor to move into an available unit right next to them. They can ask that other lease agreements prevent other tenants from moving in who would be in direct competition. Commercial leases also have disclosures. These terms include information about the real estate that could be material to the property usage.

Changing a Lease Agreement

A landlord and renter can mutually agree to make changes to a rental agreement on their own. They can formalize their agreement by writing it down, signing it, and attaching it to the original lease as addendums. However, involving an experienced attorney can help the parties avoid complicated legal issues later.

There are risks associated with modifying the lease without a lawyer. You may unknowingly agree to a term that violates the law, which means that any term that goes against the law is not enforceable. You could also agree to terms that may not be favorable to your situation, resulting in an adverse outcome later, should a conflict arise.

Without a lawyer, you also risk not addressing complex legal issues. There could be special circumstances that require a more complex lease agreement. Once prepared and signed, a lawyer can keep a copy of the completed documents. Similar to a property management service, their document management will help you stay organized later. This gives you peace of mind when managing one or more rental properties.

Getting Legal Help To Enforce a Lease Agreement

In addition to hiring an attorney to draft the lease, a lawyer can be helpful when enforcing the lease. A lawyer can assist landlords when facing tenant disputes by providing advice on real estate law. Their lawyer can act as a negotiator to find a resolution that is acceptable to everyone. A landlord’s lawyer can review the lease agreement and advise on possible paths for enforcement. They can also discuss potential areas for liability or content. As a part of this review, a lawyer can work with their landlord client to discuss optional methods for lease enforcement.

Should the dispute escalate, a landlord can hire a lawyer to represent them in legal action. Their attorney will prepare the necessary motions and file them with the court. As the lawsuit progresses through the legal process, the attorney will act on the landlord’s behalf.

There is no requirement for landlords to hire a lawyer. The alternative is for landlords to represent themselves. However, while possible, it isn’t always wise to skip legal representation. Working with legal professionals gives you professional advice on statute compliance, lawsuit preparation, defense establishment, and court procedure. There is also the advantage of having a professional help with strategy.

Find Experienced Legal Help

Although preparing a lease agreement independently may seem straightforward, the potential legal risks can be significant. A carefully crafted lease safeguards both parties and ensures that the agreement complies with applicable laws and addresses unique circumstances. Working with an attorney can avoid costly disputes, clarify ambiguous terms, and protect your interests. If you’re considering drafting or amending a lease, seeking legal advice is a wise step to ensure the agreement is legally sound and enforceable.

Visit the Super Lawyers directory to find an experienced landlord-tenant law attorney.