Five main things continue to be the reasons for legal action when dealing with legal liability in a lease agreement. A real estate lawyer knows these ins and outs of the leases and what should and should not be in them to protect both the owner and the tenant. By having a lawyer go through the draft of the lease, they can save the owner a lot of headaches, time wasted from being in the courtrooms, and money. At the time the tenants move in, everything should be complete and understood by both parties. A lawyer can also help with the details and check for these five details, especially.
Use of the Property and Limitations
Along with the home, details should apply for the property’s use, and either party should assume nothing. When assumptions happen, it is usually where problems begin. Lack of communication will always leave the other party guessing, and that is when a tenant may find the fine line to push the limits.
The lease should state precisely what the property’s uses are. It should be binding to the designated purpose only. Limitations should clearly state what is not allowed on the property and is what the owner does not allow. Then it should have the prohibited uses which go by the city, state, and parish zones. Finally, they need to go over the obligations that the property needs like maintenance. The property should be clean, and the landlord should be aware of any changes or problems on the property.
Lease of the Home
It is not as important as the property, but the details need to apply to the home as well. Three main items need to be in the lease. The first would be stating that it is a residence and not a business. If a business operates out of a home, it could bring severe liability to the owner. By placing it under limitations, it protects all parties because it could also get the tenant evicted.
There should also be an agreement to upkeep the home and keep it clean. The tenant should also let the owner know when something is not working or if there is a water leak or anything that can permanently damage the home. Limitations can happen on the number of people allowed in the home, pets also. The number of people residing and the relationships of each are to be specified.
Insurance Provisions
In cases of injury, both the owner and the tenant should have an understanding of the insurance. Should someone get hurt on the property or fire, both parties should know and understand what the insurance covers. The tenant would have to ensure their personal belongings because it is not part of the owner’s responsibility. Only in situations of injury due to negligence is the owner’s insurance responsible.
It will protect the owner if the tenant has General Liability, Real Property Insurance, and Renter’s Insurance. Some do not require these, but it would be an added benefit to the owner if the tenant would have these before the lease agreement is signed.
In Case of Default
If a tenant defaults, it should state in the lease what the requirements and steps should happen. It should go into detail what default means to the owner. For example, if a tenant fails to make payments on time, failure to carry out with the obligations required by the owner, or creating hazardous conditions or allowing it to continue without letting the owner know. There are more examples, but it should also state how many days the owner will give the tenant to vacate the premises should any defaults occur.
Some situations may arise where a tenant is going through a tough time, and the owner may give leniency to the tenant if the owner knows in advance. If the tenant fails with the promise to upkeep the payments after, then the owner will have the right to evict. Such situations are happening during COVID-19, and landlords are working with tenants as best as they can.
The Need For A Personal Guaranty
Sometimes a tenant may not have good credit or may not have a good track record. If the owner sees the need for a personal guaranty, it will happen before the lease agreement, and legal advice is necessary for the owner’s protection. Deposits are part of a guarantee, but there are situations where another person may have to sign.
Sources
https://www.dicksonlegal.com/tacoma/realestateattorney