Owning a rental property can be a great way for individuals and businesses to earn a passive income. However, the concept of passive income can be somewhat confusing, and landlords still retain some legal responsibilities to their tenants.
These responsibilities first come into effect during the drafting of commercial lease documents. Various federal and state laws require people to draft leases while following anti-discrimination laws. It is also essential that a lease document clearly delineates the rights and responsibilities of both landlords and tenants. Any conflicts that may arise in the future will reach a resolution according to the terms of these contracts.
A Bloomington commercial lease drafting lawyer could help businesses and individuals create commercial leases that meet their goals. A skilled real estate lawyer can craft a document in a way that adheres to all required legal standards as well as includes all the necessary clauses to protect each party’s legal rights.
Common Legal Issues that May Arise in Commercial Leases
For the most part, courts have long held to the idea that two parties have the right to enter into contracts for any terms they find agreeable. This concept remained true for commercial real estate leasing contracts. However, the mid-twentieth century saw an increased concern with tenant rights, specifically in terms of discrimination and eviction procedures.
A Bloomington commercial lease drafting lawyer could help landlords by drafting lease agreements that meet these important legal standards. For example, Minnesota Statute §363A.09 says that it is illegal for any lessee to discriminate against a potential tenant due to their race, color, creed, religion, or sex, among other factors. Any commercial lease should make it clear that the terms of the agreement have not taken these factors into account and that the contract conforms with this legal requirement.
Evictions are another common dispute that may arise between landlords and tenants. Much like the necessary anti-discrimination language, a proper commercial lease should contain provisions about a tenant’s rights in cases of potential eviction. According to Minnesota Statute §504B.291, both landlords and tenants have rights in case of a potential eviction for a non-payment of rent. Working with a Bloomington commercial lease drafting lawyer could help make sure the information is clear in any lease document and that all parties are aware of their rights.
Drafting Leases that Carry Legal Weight in Bloomington
Above all else, a commercial lease is a contract. Although these matters may also cross over into housing law if the tenant is using the property as their home, for the most part, leasing documents must follow the law concerning proper contract formation.
One core concept in contract law is that only the terms of the agreement that are on the lease carry legal weight. In other words, the creation of a lease should encompass everything the landlord wants to convey to the tenant. Additionally, a tenant has no additional obligations or rights under the law that are not in the contract.
As a result, there are a few key concepts all leasing documents should contain. They include:
- The timing and amount of rent payments
- The obligation to provide a security deposit
- Provisions for how the land should be utilized
- Which party has the responsibility for maintenance
- Processes for late payments or abandonment of the lease
A Bloomington commercial lease drafting lawyer could work with business owners to identify their needs for commercial lease documents and draft them in a way that meets those goals.
A Bloomington Commercial Lease Drafting Attorney Could Help
Serving as an effective landlord begins with having a clear lease that meets all legal requirements. An attorney can help to draft documents that adhere to the necessary laws. Contact a Bloomington commercial lease drafting attorney today to learn more about how they could help you.