Finding Lawyers to Review or Negotiate Your Lease
Full Answer
I am a Commercial Real Estate Agent. Absolutely you need to hire a Commercial Real Estate lawyer. An average lease is 40 pages long. It's the wording that you have to watch out for.
If you've never hired a lawyer before, you're probably wondering what you can expect when you show up for your first appointment. Well, the experience will vary from office to office—and even among lawyers in the same office.
A commercial lease is complicated, and there are many issues that need to be addressed. To make sure you are legally protected, you should have a commercial real estate attorney assist you with the negotiations and review of your commercial lease.
Getting a residential or commercial lease might be common now., but there are still a lot of aspects we might not know about them. If your lease for any rental property, like an apartment, has enough value, a legal review is in order.
A lease for commercial real estate could be a large document with loads of information. A residential lease will probably be much simpler, but it might still have a lot of problematic ideas hidden inside all that jargon.
There are certain times or chances when a landlord can increase your rent. Your lease agreement should not be making you pay rent at higher rates than is reasonable.
Lawyers are known for their negotiating skills. So, your attorney should be able to get some better terms for your lease agreement.
Even if you’ve been to law school yourself, the terms and clauses for real estate might not be perfectly clear.
A residential agreement is a legal contract between the landlord and tenant. Lease agreements like these are applicable when you rent a place for living purposes.
While most lease agreements do benefit the landlord more, a real estate attorney knows the benefits you are entitled to.
If you are concerned about runaway hourly costs, you can ask the lawyer to agree to a "cap," or an upper billing amount. This means that when the cap has been reached (or is near), the billing will stop (and the lawyer will stop working) until you authorize more work.
Paying your lawyer by the hour is the most common method. In most parts of the United States, you can get competent services for your small business for $150 to $250 an hour. Most lawyers bill in six-, ten-, or 15-minute increments. Understand that these are the smallest "chunks" of time that the lawyer will bill for, ...
In a flat fee agreement, you pay the same amount regardless of how much time the lawyer spends on the particular job. When an attorney is highly recommended by others and the flat fee is moderate, this can be a great arrangement for you.
To secure a flat fee or cap, dangle the prospect of more work ahead. Explain to the lawyer that yours is a small business with a limited budget. Especially if you're just starting out, mention that you'll have other legal needs in the future if your business succeeds.
But if the assignment is open-ended—for example, it might involve extensive negotiations or a lot of redrafting—a lawyer won't agree to work for a fixed amount. Merely reviewing a lease is one thing—negotiating and drafting is quite another.
If your lawyer will be delegating some work to a less experienced associate, paralegal, or secretary, the delegated work should be billed at a lower hourly rate. Your fee arrangement should specify the rates for associates and paralegals if they will be in the picture.
Unlike physicians, for example, who have insurance companies and the government monitoring virtually every move, lawyers are free from heavy-handed regulation. As a result, many choose to avoid bureaucratic paperwork, which they regard as a time-consuming nuisance.
The lease may have a provision saying that if you break the lease you will automatically have to pay the landlord a stated amount of money. This kind of provision is called a "liquidated damages clause.". It means that the landlord will not have to prove the actual amount of money damage your breach would cause.
The lease might refer to you, the renter/tenant, as the "lessee" and the landlord as the "lessor." The space you are renting may be referred to as the "premises" or the "leased premises."
It probably won't, but if it does, the clause will likely state that the landlord must approve of your sub-tenant. Make sure that the clause also says, "approval shall not be unreasonably withheld."
A lease is a contract, so you will want to understand what it says and how it will affect you. And because a lease is a contract, you may be able to negotiate changes to it, even if it is a preprinted form. In fact, a preprinted form should be reviewed very carefully, because its provisions will probably greatly favor the landlord.
Real estate laws can be complicated, especially if your lease contains provisions with legal jargon. In such cases, it may be worth your time to speak to an attorney familiar with landlord-tenant laws before signing a lease to ensure your rights are protected.
One year is typical, but some landlords rent month-to-month, which gives both the tenant and the landlord great flexibility. A month-to-month is ideal if you are living someplace for a short time, if you are in school and move home when school is not in session, or if your job requires you to move a lot.
Lawyers make money when there are problems. They have no incentive to keep you from having problems. Their contracts are usually written in a way that is confusing, which gives a tenant an argument against your terms - they were too unclear, etc.
I may use the BiggerPockets lease or continue with my existing lease and add a little bit based on suggestions that the attorney had made.
First, there is no lease on the planet that will guarantee a tenant will abide by everything that's in it. Only good tenant screening can protect you to the best degree, and then follow that up with a month to month agreement, in case your best-screened tenant decides to move in some crazy lover or a pit bull.
Most of the MLS have standard leases you can use. They address most issues and have already been reviewed to meet your state requirements. You can then add addendums to cover things not addressed. I added addendum A which are the rules in the building and the exterior. Addendum B are cost for repairs. I added to the lease renters insurance is required and the minimum amounts. Save your money. I agree with @Sue K. there is no lease that is perfect and there is no guarantee tenants will follow it anyway.
People who provide services to the business community. Speak to your banker, accountant, insurance agent, and real estate broker. These people frequently deal with lawyers who represent business clients and are in a position to make informed judgments.
Here are some of the important things a good lawyer can do for you: Spot subtle (or even not so subtle) variations on a lease clause you are familiar with, and explain its meaning to you. Warn you of hidden problems (or windfalls) in the lease that aren't-obvious to the unprofessional eye.
Online legal advertising works one of two ways: The site may simply list lawyers in your locale and in the specialty you need; you browse their self-written profiles and contact the ones you'd like to speak with. Or, like on Nolo, you type a legal question in a search box and receive answers from a few lawyers. You may choose to read more about the lawyers, and depending on what you learn, may decide from there whether to go further.
Trade associations are often a good place to get referrals to specialists. Other tenants in your new building. They may have used a lawyer in their dealings with your landlord and have come away feeling they were in good hands. You'll get the benefit of the lawyer's experience with this building and this landlord.
While it's true that hiring a lawyer will add expense and perhaps time to your lease negotiations, in the long run it can be worth it.
If you use an Internet advertising site to find a lawyer, you can still winnow-out the ones who are not appropriate for your situation. After collecting names (or obtaining an answer from a lawyer who responds to your question), follow the suggestions in Choosing a Lawyer to Review or Negotiate Your Lease for help in making a decision.
Most lawyers who don't specialize in real estate have only limited experience in landlord-tenant legal issues—and even those with some experience may know only about residential tenancies. So if you just pick a name out of the phone book or go to the lawyer who prepared your will, you may wind up with someone who's less than ideal for handling commercial lease issues.