When it comes to leasing agreements, many different considerations should be taken into account. From defining rental terms to ensuring the safety of property. Having a small business attorney in Phoenix to review these documents is essential for preventing costly errors and misunderstandings down the line.
In this blog post, we will dive deeper into why obtaining third-party legal reviews from professionals is important when considering leasing agreements.
What Is A Leasing Agreement
A Leasing Agreement is a document that outlines the arrangement between two parties. A lessor (the one renting out the property), and a lessee (the person that rents it). Rental agreements are typically for short-term periods such as a month, while lease agreements are used for longer rentals of six months or more.
So, understanding the lease agreement is essential. It covers long-term responsibilities, governs any potential disputes, establishes timeframes for expected rent payments, and more.
Benefits Preparing A Lease Agreement With An Attorney
When considering a lease agreement, it is important to have a professional attorney review the document before signing. At face value, an agreement may seem reasonable and simple. However, many important legal details are often overlooked if not reviewed by a professional expert.
By consulting with a trained and experienced attorney, the lessee can better understand the terms presented in the contract and be sure that all amendments are included to protect their rights.
Besides clarity and understanding, there are distinct benefits that come with having an attorney’s eyes on the agreement:
- Protection Against Hidden Liabilities Or Obligations
- Detection Of Misleading Conditions
- Assurance Of Validation
- Access To Input Regarding Potential Court Outcomes
- Avoidance Of Illegal Or Unenforceable Clauses
Provisions To Look Out For
When it comes to leasing agreements, certain key provisions should be taken into account before execution. Records and copies of the agreement should be maintained for all parties involved to ensure transparency, accuracy, and continuity.
Besides, one party mustn’t automatically rule out the other from holding onto copies. Concerning renewals, a clear expiration date is essential so that all contractual obligations are clearly defined ahead of time.
It’s also recommended that the option for lease renewal include guidelines and potential terms of negotiation to avoid any disputes down the road. By reviewing these key provisions carefully before executing a leasing agreement, individuals can better ensure their legal protection.
Common Contingencies And Clauses To Consider
Tenants need to have a clear understanding of all potential contingencies before signing a leasing agreement. Common contingencies and clauses include:
- Financial contingencies that detail how the lease payments should be made
- Payment terms that highlight when and how much the tenant will pay
- Assignment rules regarding transfers of ownership
- Use restrictions that outline which type of business or activity may take place on the property
- Maintenance requirements or provisions outlining who will maintain the premises throughout the lease
- The length of the tenancy period
- Late fees and rent amount
- Deposit specifics
- Pet policies
Other common considerations include:
- Exit clauses in case of breach of contract or early termination by either party
- Insurance clauses to cover any accidents or liabilities while renting
- Environmental regulations that must be adhered to comply with state law
Leasing Agreement Mistakes You Should Avoid
When negotiating a leasing agreement, some examples of frequent errors include:
- Signing incomplete or unenforceable documents
- Overlooking matter expansions
- Placing no special emphasis on credit terms and conditions
- Not making sure repossession rights are clear
- Missing opportunities for tax deductions
Tips For Making The Most Out Of Your Lease Agreement
Lease agreements are an important part of protecting both the lessee and lessor from potential problems. It is essential to understand your lease agreement thoroughly to make the most out of it. Here are some tips to help you get started:
- Before signing a lease agreement, read it thoroughly and make sure you understand all the terms and conditions mentioned in it. Pay attention to the rent amount, security deposit, maintenance responsibilities, and any penalties for breaking the lease.
- If you have any concerns or questions about the lease agreement, discuss them with your landlord. You can negotiate terms that you’re not comfortable with or ask for any additional clauses that you think are necessary.
- Make sure you keep a copy of your lease agreement in a safe place. This will help you refer back to it in case of any disputes or issues with your landlord.
- As a tenant, you have specific rights that are protected by law. Familiarize yourself with these rights, and don’t be afraid to exercise them if necessary.
- Maintain open and effective communication with your landlord throughout your tenancy. This will help build a positive relationship and resolve any issues that may arise.
Having your leasing agreement reviewed by a legal professional before signing is crucial. It can protect you from potential legal and financial troubles down the line. A leasing agreement is a legally binding document, and it’s essential to understand all the terms and conditions before execution. By having a legal professional review your lease agreement, you can ensure that your rights are protected, and you are not signing any unfair or unreasonable clauses. It’s always better to be safe than sorry, and investing in legal advice can save you a lot of trouble and money in the long run.