What are leases and who needs them? Whenever you want to rent out a piece of property you own for someone else to live or work in, you will need to create a lease agreement. Similarly, this is what you need to agree to any time you want to rent a place to live or work in.
While the purpose of this legal documentation can be straightforward, drafting these agreements can be confusing.
A lease agreement is a legal contract
In a nutshell, a lease agreement is a contract that outlines the terms of the relationship between landlords and tenants. Depending on the property and situation, this documentation can include:
- The “main” agreement with signatures of tenant(s) and landlord(s)
- Addendums to include other property features like swimming pools or parking assignments that are not part of the main agreement
- Pet agreements
- Policies and move-out instructions
- Guarantor agreements
If you are renting out a property to business owners, you will need a commercial lease. While these do have some similarities to residential leases, commercial lease agreements are usually for multiple years.
A legal professional has in-depth knowledge
While the law does not require you to hire an attorney when you create a lease agreement, doing so can work to your advantage. Because attorneys have legal knowledge about the possible impacts of your language use, hiring someone to guide drafting can help you avoid common problems that may come up in the future.
Although the purpose of lease agreements may not be complex, knowing how to create them can raise questions. Accidentally breaching a contract can lead to serious legal trouble, so it can be beneficial to seek out legal assistance.