Things to Consider if You’re Thinking About Leasing Property

Whether you’re expanding your business, buying a home, or even considering the real estate market as a source of income, you will most likely need to become acquainted with leases. While simply skimming before signing may be an option preferred by many, the details, particulars, and legalities behind leases are crucial pieces of information that should be kept in check.  In other words, you will need to pay close attention to them before you bind yourself and/or your company to a lease, which is, of course, a contract between a landlord and tenant.  Here are a few things to consider.  

Lease agreements should be carefully reviewed for full understanding, but there are some major points to focus your attention on if you’re going through them on your own. For instance, the amounts to be paid, deadlines and other important dates and rules and regulations regarding the leased property should be noted.  You should also make sure that you clearly understand the things for which you are responsible – beyond periodic rental payments.  For example, you may be required to cover utilities and do upkeep and maintenance of the leased property.  The lease may also impose additional insurance requirements on you and/or your company.  Even if it doesn’t, you should consider whether your current coverage is appropriate and adequate. All in all, there is quite a bit of information to review and consider and, although legal writing is supposed to be readable and understandable, that’s often not how contracts function.

You may also want to consider consulting with certain professionals about the terms and effects of the lease agreement.  For example, an insurance agent or insurance broker can assist you in assessing your insurance needs.  A business lawyer who understands the terminology typically used in leases can help you work through its practical effect.  In fact, there are parts of the review process that you may wish to leave up to a  professional, such as whether any provisions added on the lessor’s behalf alter the rest of the contract. A business attorney can also help you to think about and more thoroughly review what certain lease provisions may mean for you or your business and/or may suggest that additional provisions be added on your behalf.  However, it’s crucial to remember that any outside review of the lease provisions will be of limited value once the lease is signed and you are contractually obligated.  Thus, you should be sure to review the lease carefully and contact your insurance person and attorney for assistance before you sign the paperwork – not after.

No matter your reason for purchasing or using real estate, leases can still be legally binding contracts, whether or not they are confusing.  This means that a thorough understanding of the contract is your best defense against issues that can arise in the lease or in any potential legal proceedings over the leased property, which should help to keep yourself, your business, and your assets protected. Thus, when you are reviewing lease agreements, you should not only take note of these tips but should also not hesitate to rely on professionals to assist you.