Dispute Resolutions and Legal Fees

Unfortunately, disputes may arise between you and your landlord that cannot be settled amicably. Your lease should provide procedures for resolving these conflicts, and might contain language stating that both parties must accept mediation or arbitration as a first step before heading to court.

The primary concern of dispute-resolution clauses is ensuring that both parties participate in selecting the arbitrator. You will also find an Attorneys’ Fees clause, which basically covers who will pay legal costs and expenses if the dispute leads to a lawsuit. Beware of clauses obligating the tenant to pay the landlord’s legal costs.

If you are renting the space with friends or colleagues, make sure that everyone's name is on the lease, and that all have signed. Each person who has signed will individually be responsible for the space, payment of rent and other obligations. Do not accept responsibility for others unless you have the ability and intention to cover their portion of the rent should they move out or fail to pay.

When signing a lease with others, also make sure that the lease covers in detail how the landlord will respond if someone is unable to pay their portion of the rent. Include language that outlines the penalties and cure period for making the payment before the landlord begins the eviction process. For more information on dealing with disputes, see Chapter 25: When Disputes Arise.