Rental Agreements Explained
Rental agreements all contain the same basic components, and there are two forms. The first is the long-term rental agreement with a specified end date. The second is called a month-to-month rental agreement, which continues indefinitely until one party gives the other a 30-day notice of intent to terminate.
Most rental agreements, long-term and month-to-month, are very similar. The rental agreement contains information to identify the parties involved (landlord and tenant) . It also contains the address of the rental property. It specifies the rent, pets allowed — or not allowed — and other information about the property.
All rental agreements contain a section specifying what happens at the end of the rental agreement. A rental agreement that is signed by both the landlord and tenant is an enforceable contract. If a tenant or landlord violates any of the terms of the rental agreement, either the tenant or the landlord can be found liable for the violation.
Benefits of a Rental Agreement Lawyer
One of the most important reasons to hire a rental agreement lawyer is legal compliance. Laws pertaining to rental agreements are not only technical and detailed, but they vary from state to state. A rental agreement that is compliant in one state may not be considered so in another. Words used in the agreement can drastically change the meaning of the entire contract and create liabilities for either party. Having a qualified professional draft the rental agreement is the best way to ensure compliance with all local, state and federal laws. A rental agreement lawyer doesn’t just draw up agreements; he or she also makes sure the document is fair and balanced. Even when the intent is to keep the rental agreement simple, vague language can lead to misunderstandings and miscommunication. A professionally written rental agreement avoids lengthy conversations about what’s fair and what’s not fair in the agreement. It gives both parties a common point of reference. This saves a lot of time and may even help prevent future disputes. A rental agreement lawyer’s primary purpose is to protect his or her client’s interests. In part, this means creating an agreement that is fair for himself/herself (the rental agreement lawyer’s client). A rental agreement lawyer can help you negotiate the ground rules before the rental agreement is signed so both parties feel secure before entering into the agreement.
When to Hire a Rental Agreement Lawyer
When it comes to rental agreements, it’s easy to think that you can draft one yourself and cover all of your bases. While some do-it-yourself rental agreements are acceptable, most of the time it makes sense to get an experienced rental agreement lawyer involved.
If you are a new landlord, working with a lawyer is highly recommended if you want to be sure that the rental agreement you draft is complete, thorough, and accurate. Also, if you are looking to modify an existing agreement and want to make sure you are legally protected, contact a rental agreement lawyer before taking any actions.
In addition, if there are certain aspects of your rental agreement that you do not understand or that seem like they will cause a problem, you need to contact an experienced attorney. Failing to sign the proper paperwork, making simple mistakes, etc., can all result in costly problems, so it’s far more advisable to work with someone who knows the ins-and-outs of a rental agreement.
Common Rental Agreement Problems a Lawyer May Handle
One of the most common issues clients contact me about is the eviction process. I often get calls from landlords who have gone through the process but now realize that they did not follow the appropriate procedures and now have a tenant who they cannot evict under the law. When a tenant is not paying rent or behaves in a way that violates the lease, landlords do not have the right to lock them out or remove their possessions. Landlords must evict tenants using a legal process which often varies from state to state and sometimes by county. You may be able to evict a tenant without a lease in place in some situations while you absolutely must have a lease in another. To find out this information, you should contact an attorney who practices landlord tenant law and is familiar with the laws in your area.
Lease violations are another common problem. These can be anything from failure to pay rent, the tenant having unauthorized guests, modification of the property without permission or pets without permission. Typically, there is a series of small and escalating penalties for lease violations. The first time a violation occurs, you will probably want to fill out a warning notice. Repeated violations result in larger penalties and depending on the severity of the violation, you can ask for the tenant to vacate (evict). An experienced attorney can advise you on the appropriate course of action for the particular violation and jurisdiction .
Another frequent dispute involves the tenant’s rent. If a tenant fails to pay the rent, depending on the amount, the response may escalate from a warning to eviction. Sometimes, a tenant will pay an amount less than the rent due. In this case, take a careful look at the lease and how you dealt with partial payments in the past. If in the past, you accepted partial payments even though the lease did not state you would do so, you may need to give that tenant some time before you could evict them if you chose to go that direction. It is always a good idea to check on how you have handled past payments if a tenant does not pay the full amount.
More extreme disputes involve tenants who cause damage to the rental property or are involved with illegal activities. When tenants damage property, you may have to evict them and could seek damages beyond the normal basic amount as a separate matter. If you rent to tenant who does not abide by local ordinances, such as the noise laws or fireworks restrictions, the tenants can be removed. Depending on the severity of the situation, a lawyer can assist you in obtaining an injunction to require tenants to vacate the property.
Often times what circumstances trigger a dispute with your tenant you may have to rely on an attorney to navigate the complicated process of dealing with tenants.
Selecting the Right Rental Agreement Lawyer
When choosing a rental agreement lawyer, several factors should be taken into consideration. First and foremost, the lawyer’s experience in real estate law should be paramount in your decision-making process. The law is constantly evolving, and any good attorney must stay on top of the newest cases and legislation. When it comes to finding an attorney to handle your landlord/tenant issues, be sure to find out if he or she specializes in litigation and/or real estate law, particularly with regard to landlord/tenant matters.
Second, while most attorneys are knowledgeable and experienced, some have a little extra something to offer their clients. It may be worthwhile to look into your attorney’s experience with commercial and residential leasing, commercial property development, insurance defence relating to commercial disputes, and insurance defence work in general. All of these issues may come into play when handling a prospective landlord/tenant case.
Third, make sure you and your counsel are on the same page as far as expectations go. Any good rental agreement lawyer will produce results; they will also need money to cover their expenses. It is important to discuss your case budget with your attorney up front and to collaborate on a comprehensive litigation plan. While we cannot guarantee an outcome in terms of a certain dollar figure, we can guarantee that you will be kept up to speed on your case as it unfolds.
Expense of a Rental Agreement Lawyer
The cost of hiring a rental agreement lawyer will vary depending on the agreement but it will almost always be cheaper in the long run to hire a lawyer rather than face a dispute that could lead to litigation.
Keep in mind, the average commercial banker or real estate broker is not a rental agreement or commercial lease expert. His or her knowledge of rent contracts, whether for commercial or residential properties, is typically vague and general compared to an experienced rental agreement lawyer .
It can cost you more to hire an inexperienced lawyer to help you create, negotiate, or litigate a property rental agreement than to hire and experienced rental lawyer from the get-go. An expert rental agreement lawyer will help you get a better agreement for your future rent contract and save you time and expense on realty-specific disputes that are avoided with a good rental lawyer in hand.
There is a saying that a penny saved on the front-end can cost you a dollar in resolving a legal problem related to a poorly crafted real estate rental agreement. Having a proper rent contract in place can be worth thousands or tens of thousands in some cases.