by Bruce L. Dorner
“The landlord gave me a standard lease, is there any reason for you to look at it?” Oh, how I wish there was such a creature as a standard lease! In reality, nothing is standard when it comes to real estate leases. Inserting a caption at the top of the document calling it a “Standard Lease” does not create such a creature.
Leases are like children. There are many similarities, but there are also many differences. Recall the day when you came home from school with a less than stellar report card and your parents commented that you should have done better? You responded that “ALL the kids did badly and mine isn’t that bad.” Then followed the retort from your parents, “we don’t care about the other kids, we only care about YOU!”
Your lease is your “report card.” I only care about YOUR lease.
On the similarity side, all leases have certain basic ingredients. They designate the parties so we can clearly identify the landlord and the tenant or tenants. They describe the place to be leased, and as always, the amount of rent to be paid. Most leases provide for a term, anywhere from one month, to a year or longer. Often there is a provision describing what the tenant can and cannot do in the rental property. After those basics, the lease is limited only by the creativity of the parties and their attorneys.
We usually separate leases into two broad categories. The first is a residential lease for an apartment, condominium, or home to be occupied by a single family. The second category is a commercial lease for operation of a business. Careful drafting of the terms in any lease can create a good relationship between the parties, or it can create a disaster.
Leases often include a provision as to what happens when the rent payment is late. Sometimes there is a penalty which can be quite expensive. Sometimes there is a right for the landlord to evict with force (i.e., kick the door down.) Although the right to evict with force may be in the contract, I haven’t seen anyone enforce by that method in all my years of practice. I think that some leases include that provision to put fear into the tenant.
How long does the lease run? Are there rights to extend or renew the lease? How much notice must each side give to the other if they wish to end the lease? Each of these items requires careful study and understanding of the rights of all parties to the contract.
What amount is required for a security deposit? Where will the security deposit be held, and will it earn interest? What happens if the landlord sells the building? Can the landlord kick me out if she wants to make improvements to the property?
Does the lease require the tenant to pay a portion or all of the real estate taxes? Is there a provision for snow removal, trash pick-up, and lawn maintenance? Any one of these items may create a problem in the relationship.
The items mentioned are but a few of the reasons leases sometimes end up in court. No one took the time up front to really work through a “fair and reasonable” arrangement. No one thought they needed an attorney. After all, it’s only a “standard lease.”
This article provides general information only. It is not legal advice. You should consult with your own attorney before making any legal decision.