Last Updated on June 23, 2021 by Larious
Signing a lease agreement is one of the first steps of starting your business. You may have your reasons to sign a lease agreement. However, it is important to follow a proper procedure while signing a lease as it will bind out with the agreement for the said period. Unfortunately, a lot of people take it too lightly and end up regretting their decision.
Today, we will share some quick tips related to the process of signing a lease agreement. In addition, we will share some security tips along with some quick hacks to make the process easier.
Before you proceed, please know that there are different options to sign the lease agreements. However, we tried a few and will mention the most effective way to create and sign lease agreements online.
So let’s begin with the first and the most important thing to consider when signing a simple lease agreement.
1. Use a Trusted Platform to Create Agreement
If you are preparing the lease agreement, make sure to go with an effective and reliable platform. The best way is to use a template and personalize it according to your requirements. The template comes with all the necessary conditions and clauses that help you write it without any assistance.
Additionally, you get to enjoy the complete freedom to make any changes you want.
Our expert’s choice for drafting a lease agreement is CocoSign. This platform has thousands of templates to help you start with. In addition, you can check some other platforms like Adobe Acrobat, where you can find similar templates as well. Once you find the right document, click on the customize button and add all the required details.
2. Proofread the Conditions and Clauses
You do not want to get into some legal trouble just because you were not careful in reading the conditions of the lease agreement. Therefore, apart from simple details like lease period, fixed amount, and payment methods, you must proofread some important conditions.
Here are some of the clauses that you can add or remove from a lease agreement:
Jointly and Severally Liable: This clause is used to convey that every tenant signing the agreement will be equally liable. You can discuss this clause with the owner to ensure you do not be liable for all the losses.
Severability Clause: It is one of the most important clauses that keep the agreement valid even if one or two clauses are deemed invalid. It can save you from losing the lease in case of an invalid clause.
Premises Access: Landlords often add this clause to enjoy access to premises whenever they want. You can discuss it with the other party and ensure a reasonable visit.
There are many other clauses that you can consider. However, we won’t bore you with the list as you can check them on the template whenever you want.
3. Check Dispute Resolution Terms
We wish that you do not need to face such situations, but considering the dispute resolution terms is important, especially when signing a lease agreement. If the owner has written the terms with his interests, you can face some serious problems.
That is why it is important to check the dispute resolution terms. If the agreement does not have any resolution terms, ask the other party to add them after a reasonable discussion. It will help you stay away from unnecessary liability and gives you a fair chance to defend yourself.
Tip: Most of the agreement templates on CocoSign come with dispute resolution terms. You can check them out and personalize them accordingly.
4. Keep it Legally Valid for Tax Benefits
Most of the time, both parties sign the lease agreement for the sake of formality. They do not even spend some time considering the legal side of the agreement. However, it is not important to file for some tax credits if you have a valid lease agreement for business property.
You can get the required information from your lawyer. However, you just need to focus on keeping it legal by adding all the sections required for a document to be legal.
The most common mistake is to avoid adding a proper Acknowledgement section for the agreement. Thus, you can check out the templates to find the right agreement for you.
5. Mention all the Rental Terms
Again. You are not creating the agreement just for the formality, and you need to focus on keeping it specific to all the matters. That is why it is important to mention specific details related to the rental terms.
First, you can focus on maximum occupancy (number of tenants), property use, payment terms, security deposits, and other parties’ expectations.
Mentioning these things specifically eliminates the chances of dispute, allowing both parties to have a healthy relationship. You can learn more about it by referring to a rental agreement template.
Why Are Digital Agreements Better?
More and more people are switching to digital agreements to sign leases and other documents. These agreements are easy to create and provide the most convenient way to store them securely. In addition, anyone can access the document and eliminates all the chances of tempering to the original documents.
Many services let you track the changes to a document in an organized way. This way, you can increase the transparency of the process to create a sense of trust in both parties. Also, platforms offering digital agreements come with reliable templates that let you create an agreement in a minute or two.
You can use the above tips the next time you sign a lease agreement. All these tips are general and apply to all types of agreements. We have shared some important tools in the article to help you create and manage your agreements conveniently. You can use those tools or do your research to find some other platforms as well.