Should I hire a lawyer to review our lease? Minneapolis area

[Megan A.]

My husband and I purchased a duplex about a year ago and occupy one side and rent out the other to a wonderful tenant.  When we purchased the property we did our own research on state laws and used outlines that we found online to come up with a new lease, we also used parts of what the previous owner had the lease. At the time we felt we did not have the money to hire a lawyer to review but now we are in a better place financially to do so if it is necessary.  I feel like we have a good handle on the laws but I want to make sure we have all of our bases covered for the future.  What is your opinion and can anybody recommend a good lawyer in the Minnetonka, MN area that specializes in this kind of law? Thank you.

[Art G.]

Most contracts are straight forward. Identify parties, the land, the rents and when due. Then there are lots of other small things to include. 

But this is what I wanted to say. If you are worried about the risk then analyze it.

Cost to have a lawyer review- $200-400/ hour at most.

Cost to screw up your contract- one months rent... 2 months rent.... 6 months rent????

I think you see where I am going with this. The potential loss clearly is greater than the cost of ensuring your contract is strong.

Where to find the attorney?  Phone book, google, etc. But I will tell you the ninja tip on how to locate the best attorneys, no matter what field they are practicing.  

Go to the court house, find the court room that deals with what ever kind of law you need an attorney for, at a break or when court is not in session, say excuse me to the bailiff, "I really could use your help please.  In your opinion, who do you think the best real estate attorney around is? I mean you must see them all and know which one impresses you the most, right?"

Bailiffs have nothing to do but watch court and then chat about the attorneys with the staff.  They know who the idiots are and who the rock stars are.  And you appeased his ego by making him know that you think he is the local expert on the subject.

Good luck

[Mike D.]

I would definitely get it reviewed by an attorney. You can find one to do that for a couple hundred. And at the same time have him review your other documents like rules, checklists and applications. Especially with applications it's not hard to violate the fair housing laws today. Make sure you find an attorney with experience in that area. It makes a difference.

[Rajeev Kotyan]

@Megan A.: As Mike has indicated, as you have already got a process and template in place, find a local attorney who is willing to review and make positive or negative comments about the set of documents you use. 

Even after 20 years of doing this, I do an annual attorney review of all the documents so that I am current with the appropriate local laws, even though there are many aspects I am quite well aware about.

[Art G.]

@Rajeev Kotyan Good call on the annual contract and document review. I think that is a great idea!!

[Andy Schornack]

Call Bruce Boeder or Katie Melander. Both are good. Send me note if you want direct contacts but both own their practices.

[Megan A.]

Thank you all for your helpful replys, I am amazed at how generous people are with helpful information in these forums. I will definitely be contacting an attorney, for peace of mind if anything. 

[Oscar Brooks]

Killer pro tip @Art G.!

[Alexander Lang]

Hello @Megan A.,

I think having an attorney review your agreement is a wonderful idea. I myself have done this to perfect my lease and also minimize my liabilities. I know it may cost a few hundred but better to spend that small amount now, than thousands later.

I personally used Wilcox & Martin PLLC a few years ago. The Attorney who reviewed my lease was Graham Martin and I believe it cost me around $250-$300 for his review and edits? He did a great job so I recommend you reaching out to him for counsel on this. 

[Thomas S.]

Save yourself some money and find a landlord that has already paid a lawyer check the grammar in their lease. Rental leases are not rocket science and are governed by your state landlord tenant regulations. If you know your regulations, obviously you do or would not be in this business, that is all you need to know. Do you have a friend that rents from a corporate landlord. Get a copy of there lease and modify it to suite your specific property.

90% of tenants and landlords never need to inforce a lease beyond rent payment. When they do it is usually rent payment or eviction for behaviour. Keep it simple and let the regulations govern the content. 

[Matthew Kreitzer]

Originally posted by @Thomas S.:

Save your self some money and find a landlord that already has a working lease. Rental leases are not rocket science and are governed by your state landlord tenant regulations not state law. If you know your regulations, obviously you do or would not be in this business, that is all you need to know. Do you have a friend that rents from a corporate landlord. Get a copy of there lease and modify it to suite your specific property.

90% of tenants and landlords never need to inforce a lease beyond rent payment. A residential rental lease is kindergarten level law.

 Except that many landlords fail to put in provisions that will cost them extreme amounts of money if they ever have to go to court such as; Collection Fee provisions, Merger Clauses, indemnity clauses, etc. I agree with the other posters. Yes, leases are not rocket science, but most people don't know about some of the clauses you need to protect yourself come litigation. 

[Thomas S.]

I should also have assumed that since they asked if they should consult a lawyer they have zero understanding of the business but they could go to a corporate landlord, pretend to be potential renters, and ask to see a copy of their lease.  

Many people tend to go to the extreme to protect them selves from a dooms day event when really all you need is the basics.

[Megan A.]

We did use multiple examples of leases from corporate rental properties and I did my research on all of the MN laws as well as read a few books on the subject. I am the type that is overly cautious and I am a bit of a worry wart so I want to make sure that I  doing things correctly. I guess I want my butt covered if there ever would be an issue down the road! Thank you all for your input I sincerely appreciate it. 

[Peter Postma]

You should have your lease reviewed by an attorney who is knowledgeable with recent updates in landlord/tenant law in Minnesota. Once in awhile there are small changes to the law that can effect the enforcement of the lease. For example, in January 2016 the Minnesota Supreme Court had a case (Gates v. Moua) where the court found that due to the language of the lease a tenant was liable only for damage done to the tenant's unit and not to the rest of the building. We made small modifications to the lease for our duplex in order to mitigate the risk based on this small change. 

[Carl Petterson]

Megan - I'm an attorney and I fall into the minimizing expenses camp when starting out. 

If you're just testing the waters, house hacking, etc., I suggest you do what you're comfortable with. The Minnesota State Bar Association has a great 'free' lease on their website. It's vetted, reviewed, and updated by attorneys. Other Minnesota lease forms are available too - check the Secretary of State's website and the Realtor's Association. Most are designed as a fill-in-the-blank type forms. Review them, and if they make sense to you, use them. If not, reach out to someone (like a friend or mentor, including counsel) that can explain it or share their documents. (Let's keep this a secret, but those are the forms many attorneys use as the template for their documents.) Many attorney's dabble in this area, but I encourage you to use a well-established real estate attorney. Use their knowledge and expertise to grow yours, not just review your documents. Ask a billion and one questions when you meet with them.

Once you're established, have multiple properties, or it's a business, then I suggest as others and request a document review and an hour or two from an experienced real estate attorney.

You probably need something in place, but please don't try creating your own or download a generic non-MN one from a blog. That could be worse than having nothing.

[Deanna McCormick]

A good source for a comprehensive Rental Lease in Minnesota is the Minnesota Multi Housing Association. MMHA they have a website and offer the most current leases for landlords. You may add your own addendum's to the lease and most cities in and around Minneapolis require a Crime Free/ Drug Free Addendum. Owners / Landlords are required to complete a course given by local police departments and to keep up this certificate with continued rental license applications. The lead free addendum and pamphlets are required to be given to each tenant. I hope this might help as each property is unique, and housing courts in each county may differ but this lease in Minnesota State wide recognized. You can become a member of the Association and they offer classes for landlords and rental agents, leasing agents and maintenance staff.

[Megan A.]

@Deanna McCormick thank you for that helpful information. I will follow up and check out the MMHA site.  Our duplex is in Mound and Mound does not require a rental license for landlords. I have not completed that course with the local police department but that is good information to know should we ever buy another property in the Minneapolis area. 

[Deanna McCormick]

Megan, 

I would for sure add the "Crime Free Drug Free" addendum to your lease, you can copy / paste one from city of Mpls, or Plymouth for example and just use your address/ tenants address. You are in Hennepin County so the 4th District Housing Court would handle any of your housing evictions or housing actions. It is well advised you have this addendum even if your city doesn't require it, as it covers also any guests of residents that may be doing unlawful activity. I have buildings in Plymouth they have more requirements for landlords and require certification, but you don't need the certification to use this addendum. 

The Lead / Lead Paint notice is required by Federal Law and must be given to anyone renting even if your city doesn't require it, if your dwelling was built before 1978. It is easy to download. 

[Brian Wagner]

If you are still looking for the name of a good attorney send me a private message and I will send you their contact information.  I can give you a couple names.

[Chad Rainwater]

Great dialogue about protecting your investments.    While meeting with your lawyers, I'd suggest Estate planning as well to minimize the tax burden for any unplanned event.