Why it’s important to have a lawyer review your Lease Agreement
Why it’s important to have a lawyer review your Lease Agreement
Leases are just contracts. A lease can be a single page or it can be fifty pages, but the effect of signing a lease is the same either way: you are entering into a contract as landlord and tenant. It’s vital to understand the provisions of your lease, whether it’s commercial or residential. The landlord-tenant atmosphere continues to change in the wake of the COVID-19 crisis. When in doubt, have an expert review your lease! It is not something that should break the bank, but having a good attorney review your lease before you sign can help avoid a bank-breaking conflict after the parties are involved.
Most people have signed a lease agreement. Whether you were renting your first apartment, signing a commercial lease for a space or office, or you are a landlord providing a lease Agreement to your tenant, the question “is this lease normal?” is asked frequently. Leases protect the landlord and the tenant. In Virginia, residential leases now are governed by the Virginia Residential Landlord Tenant Act. However, lease agreements can modify the relationship between landlord and tenant such that different rules are at play. Overall though, the lease agreement’s purpose is to make clear each party’s rights and responsibilities. Vague language or ambiguity is the worst nightmare to someone who has run into conflict in a lease. That’s why it’s so important that whether you are signing a residential or commercial lease as a landlord or a tenant, it is highly advisable to have a lawyer review it first. You shouldn’t print a generic contract off a website and hope it is going be suitable for your unique situation, and the same thing goes for a lease.
What needs to be in my lease? Leases should always have the basics covered. For example:
1. Who are the parties involved?
2. Where is the leased property located?
3. What is the rental cost?
4. What is the lease term?
5. What exactly is being leased?
These five seem obvious, but there are frequent pitfalls we see landlord and tenants fall into. For example, is either party a corporate entity? Further, is their corporate status in good standing in their state? Also, if liability falls on a corporate entity, what safeguards do you have in place to make sure that entity will not just close its doors leaving you without any legal recourse? Also, regarding the cost and lease term, are there changes to the rental cost under any circumstances? Do you need to provide sixty days’ notice for making changes to the lease? These are just a few of the focuses that come with the first glance at a lease.
If you are entering into a new lease now as a landlord, or a tenant, it is vital you have a lawyer weigh in with your lease because the laws regarding the termination of leases have changed drastically as a response to COVID. As of July 5, 2021, 3.6 million people said they faced eviction in the next two months, according to the U.S. Census Bureau’s Household Pulse Survey. This number could continue to grow as people face the financial stress that COVID has brought. In March, 2021, the Consumer Financial Protection Bureau issued a report saying 2.1 million families are behind at least three months on mortgage payments. Whether you are a landlord, or a tenant, there is a good chance that the COVID-19 public health crisis has added financial stress to your life.
We get lots of questions from potential clients that are either landlords or tenants that have to do with the eviction process. Historically, landlords could evict tenants for reasons based in breaches of the lease or expiration of the lease agreement between the parties. The most frequent breach of a lease is non-payment of rent, and landlords previously removed tenants from their properties using the Unlawful Detainer lawsuit with relatively few issues. However, with protections that have arisen over the past seventeen months, the process of evicting a tenant based on failure to pay rent has gotten much more complicated.
The most recent development in Virginia law is the passage of HB 7001, which just made additional changes to the way evictions must be handled. The fourteen-day notice came into effect under COVID, and this bill continues to require a fourteen-day notice for non-payment of rent, rather than was previously required, which was only a five-day notice. Also, the landlord has the responsibility to apply to the rent relief program for their tenant during the course of that fourteen-day period. Many other responsibilities arise under this bill and other laws that have come out of this tumultuous period.
Making sure you have an educated professional on your side when you are entering into any contract, especially a lease agreement, is critical. Call Wakefield Law at (703) 771-9740 for more information. All consultations are free.