Should I Consult An Attorney Before Signing A Lease?

Entering into a legal contract to lease property can be overwhelming and confusing, and you may be uncertain about what you are committing yourself to. There are important considerations you will need to account for based on whether you are signing a residential or a commercial lease. In some cases, having an attorney assist you can be helpful and ease your concerns. Other times, you may be able to navigate the situation on your own.

Below, I explain the factors you will want to keep in mind for residential and commercial leases, as well as when hiring an attorney is a good idea.

When You Need An Attorney Before Signing Real Estate Leases

Residential Leases

If you are looking at leasing an apartment, you may have limited bargaining power. Most landlords typically use the same standard form to create their leases. Unless you are uncomfortable with the language used in the lease or uncertain of what it means, you may not need an attorney for this.

However, if you are dealing with a landlord on a single piece of property, such as a house, you probably should consult an attorney to review the terms of the lease to ensure the landlord has not invented bizarre terms that normally would not be appropriate. In some cases, there may be stipulations in the lease that you would never agree to had you known about them before you signed. 

Having an attorney review your lease is even more important if any of these situations apply to you:

• You are disabled and require special accommodations 
• You have an animal, either a service animal or a pet
• The landlord has mentioned things verbally that are not in the lease
  
  

Commercial Leases

There are six different types of commercial leases, each with its own terms and responsibilities for the renter. Here are the typical requirements for each:

1. Full-service lease: You must pay base rent and utilities, and your landlord will pay for building expenses such as maintenance, real estate taxes, and insurance.
2. Single net lease: You must pay for rent, utilities, and property taxes, while the landlord will cover building maintenance and insurance.
3. Double net lease: You must pay rent, utilities, property taxes, and insurance. Meanwhile, the landlord will pay for all maintenance costs. Your rent will be lower because you are covering a higher share of the additional expenses.
4. Triple net lease: In addition to paying for rent and utilities, you are also responsible for a share of building maintenance, taxes, and insurance. 
5. Modified gross lease: You must pay a portion of the operating costs based on the percentage of the building you occupy.
6. Percentage lease: You must pay rent and a percentage of your gross revenue (often 7%). This type of lease is common for malls or commercial buildings with multiple shops under one roof.

If you are looking to lease commercial space, it is usually a good idea to have an attorney review the lease. Even though the landlord or leasing agent for large commercial spaces may tell you they are subject to “standard” leases, you have more bargaining power as a potential tenant and likely can negotiate changes.

For example, in a mall, the leasing agent may present you with a percentage lease that contains complicated, onerous terms you are not comfortable with or don't understand. The time to negotiate is before you sign the lease. You also need an attorney to inform you of all the commitments for both yourself and the landlord.

When In Doubt, Talk To An Attorney

Leases are contracts that, once you sign, can be difficult to get out of. For this reason, it is always a good idea to have an attorney review your lease before signing to ensure you understand all the stipulations, responsibilities, and fine print. The last thing you want to do is sign a lease that forces you to pay more than you expected or does not work well for your living situation.

If you are considering entering into a lease in Texas and would like to determine if legal guidance is appropriate, please schedule a complimentary initial consultation* with Adair M. Buckner, an attorney at law.

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*(The free consultation does not cover actual review of documents or giving legal advice on a specific situation.)

** This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, specific tax, legal, or accounting advice. We can only give specific advice upon consulting directly with you and reviewing your exact situation.