How to identify the elements of a real estate lease agreement

On Behalf of | May 19, 2022 | Real Estate Transactions | 0 comments

Whether you are in the market to purchase prime Florida real estate or you wish to sell your property, the task may feel arduous. One of the most overwhelming elements of the leasing process may involve the lease agreement.

When you have the document in front of you, it is important to make sure all of the elements are present. Furthermore, you want to make sure you understand the details so you will not face a problem with the property or terms of the lease later on down the road.

Key elements of the agreement

According to The Balance, the first step is to establish who has possession of the property. While you may give possession of the property to the leasing party, you have the right to enter the property if there is an emergency or you need to repair something. Make sure you clarify whether the tenant listed on the lease can allow people to use the space for another purpose than the one you agreed upon.

You also want to outline how the tenant can use the property. Whether the lease is for office space, residential property or a retail business, the language should detail your expectations of what is acceptable.

In addition, you want to include how long the lease will last. Is the tenant locked in for one year or ten years? Make sure you also put how much time you require the tenant to give you if and when they wish to move out.

Maintenance and Improvements

If a tenant leases a property for an extended period of time, they may expect the property owner to make improvements or update the property. This may include repainting, landscaping or reroofing the property if the need arises. The lease agreement may also list whether the landlord or the tenant is responsible for landscaping maintenance or repairs to the property. While the landlord is usually responsible for repairs, it is important to make sure that detail is included in the final agreement.

Making sure the lease agreement makes sense to you is a critical part of the buying or selling process.