Normal RE Lawyer Rate?

Question

Hi all,

I recently had a tenant fall on my property and decided it’s time to lawyer up. The lawyer I called I ended up liking a lot and he has a lot of experience specifically in RE law, but his hourly rate is $400. His paralegal is $160/hr. Just wondering if this is in the ballpark of normal or if I should look elsewhere. For reference, I’m in Austin, TX. Thank you!!

Steven Warner · Answer

Jennifer-

I understand what you are trying to do- be a good LL - but you really should not do anything.  To do so otherwise can be viewed as an admission of guilty/liability.    I

And even if you do given them $$ I would have them sign a Release or at least acknowledge that the money you are providing is not an admission but is an accommodation during her tough times.

And if you given the $200 then are you still going to pay $400- 600 for an attorney to draw up the release?  So now you are closing in on a $1000 - just to be a good LL for a tenant that is not taking responsibility for her own role in her "accident".

No, I say give her nothing other than sympathy, "I hope you are alright",  for her "fall" until you are served or a demand is made by her or her attorney.  And even then, what are her real damages?   Not much I would guess.

Steve

Jerel Ehlert · Answer

Hi!  I'm a lawyer in Austin, TX.  My practice is mostly in the area of RE (State Board of Legal Specialization is the only authority that can permit a lawyer to say they "specialize" in an area of law, which requires fees, exams, and a "pretty pretty please".)

Attorney fees are based on several factors that have been thoroughly litigated:

(1) the time and labor required, the novelty and difficulty of the  questions involved, and the skill required to perform the legal service  properly; (2) the likelihood that the acceptance of the particular employment will preclude other employment by the lawyer; (3) the fee customarily charged in the locality for similar legal services; (4) the amount involved and the results obtained; (5) the time limitations imposed by the client or by the circumstances; (6) the nature and length of the professional relationship with the client; (7) the experience, reputation, and ability of the lawyer or lawyers performing the services; and (8) whether the fee is fixed or contingent on results obtained or  uncertainty of collection before the legal services have been rendered.

Like other professionals that are free to set a market rate, we gauge the highest wage that the market will bear.  What is said for contractors goes for lawyers: Good, Fast, or Cheap - you get 2 out of 3.  An attorney who's practiced in your are of law for 20 years and the law/facts are well settled will charge much differently than one who's practiced for 5 years and the law/facts are too new to predict a set of likely outcomes.  Same thing as lawyers in rural areas where there are few attorneys who can take a case compared to major urban centers where there are plenty of lawyers.

As for your situation, slips/trips/falls are under premise liability defense, not so much on the RE side.  Your insurance has already made a determination that you're not liable.  If your T lawyer's up, your insurance will hire one of their insurance defense firms to represent you on their behalf.  You, as always, are free to hire your own lawyer in addition to theirs that they will pay for, but you will be out of pocket on yours.

Until T does lawyer up, not much to do without knowing a lot more about your facts.

Matthew Yu · Answer

@Jennifer Jackson I am a lawyer and a multi family owner. If I were in that situation I’d get her out of my building by giving her some $$ to move. That way she can’t poison other tenants with her opinions.

Caleb Heimsoth · Answer

@Jennifer Jackson you tell the tenant no to the requests and you evict if they don’t pay rent.  That’s all you do here

Jennifer Jackson · Answer

@Steven Warner

Thanks so much. That’s exactly what I was concerned about. It sucks because being a “good “ person and helping screws you over in the business sense. At the end of the day, this is a business and I’m her landlord, not her mother.

Great responses. Again, thanks for the advice everyone. BP is a great community !!!

Russell Brazil · Answer

Im in DC and thats the right range for here.

Steven Warner · Answer

I am just going to ask a simple question here - Do you not have insurance? I would think you do and they should be made aware of the issue immediately.

As far as the rate- for Texas I would think that is about right.

Good luck

Steve

Steven Warner · Answer

Hi Jennifer!

Given this, it looks like it comes down to tenant relations--- or shall I say "Are they worth keeping?"

If they are work keeping then I might try to work with them some so that it creates a "win-win" atmosphere.  If you do something on their behalf or that was requested - I would make sure to get the request in writing as well as any response you offer in writing.  Protect yourself now even if they are "good" tenants.

If they are not worth keeping then I would not agree to do anything.  Tell them you believe you are not liable for anything and while you understand that their injury may have caused them some difficulties, you are not responsible for those difficulties.   Again- in writing.

If you go with the attorney, he is going to ask of you what do you have in writing regarding the injury and any agreed remedies.

Bottom line is that while you think you may need an attorney, personally I would waiting until an actual suit/or demand for money is served on you.

Whatever you do make sure it is written form.

Good luck!

Steve

Jennifer Jackson · Answer

@Caleb Heimsoth

No lawsuit, but I do want to consult someone to make sure I’m responding in an appropriate way. For example, before I consulted a lawyer (via something called just answer ), I would have offered her some $$ for her inconvenience. I now realize that’s accepting blame. it seems very necessary to get anything in writing checked over before sending.

Caleb Heimsoth · Answer

@Jennifer Jackson seems about right to me.  Have you been served with a lawsuit or something? Just because they fall doesn’t mean you need a lawyer

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