All lease agreements are not created equal
Living in today’s modern world,
somewhere along the way you’re going to be asked to sign a lease
agreement, either for where you live or for your business. The most
common misperception I’ve seen among people is that all lease
agreements are basically the same and are nonnegotiable. That could
not be further from the truth. Almost every lease agreement is
negotiable. Some lease agreements are very basic, utilizing an
Allstate form (Allstate is a legal publisher in New Jersey that
produces forms) with a rider attached to it with specific terms and
conditions relating to the leased space. It’s easy to spot an
Allstate form as it is stated right on the bottom of the document. In
contrast, there is the custom lease agreement created by the landlord
or their attorney. Also, depending on the age or credit rating of the
individual leasing the space, you may see a space for a personal
guarantee by a third-party.
In my own life, I have recently
experienced my daughter asking me to review her first lease agreement
for off-campus housing with me as the guarantor of the lease. The
first thing she told me was that the agreement was nonnegotiable, and
all of her friends had already signed it. But, that does not mean the
lease agreement is acceptable. Avoid signing a lease agreement
without careful review. The perils can be great to both you and most
likely your guarantor.
Some common things to look for when
reviewing a lease agreement are additional charges added to the lease
agreement commonly referred to as “common area maintenance fees”.
These fees can be a fixed amount to cover a specified charge or a
variable charge, in which the landlord will bill you for additional
charges defined in the lease agreement. I have seen many leases where
the common area maintenance fees are greater than the basic monthly
lease amount. There are also numerous other provisions you must watch
for that can expose you to liability for damages that can occur in
the common areas, in the piping/electrical system in the leased
space, in the heating and air-conditioning system for the leased
space and the list goes on and on.
It is impossible in such a short blog
to list all the things to look for in a lease agreement. The best
advice I can give you is to ensure that you understand everything in
the lease agreement. It is also a good idea to contact the landlord
and find out the average cost including all common area maintenance
charges as well as the utilities costs to a tenant for a similar
leased space or the prior tenant. Finally, I would recommend having
an experienced attorney review the lease agreement with you to ensure
that the dream space you rent for your apartment or business space
does not become a nightmare later. As always, if I can be of any
assistance in answering general questions regarding lease agreements
feel free to email me at David@weinsteinlawyer.com.
© 2017 Law Offices of David A. Weinstein, P.C. All rights reserved. The information contained in this website is provided for informational purposes only, and should not be construed as legal advice or an offer to perform services on any subject matter.
© 2017 Law Offices of David A. Weinstein, P.C. All rights reserved. The information contained in this website is provided for informational purposes only, and should not be construed as legal advice or an offer to perform services on any subject matter.
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