Lease letters are those letters which carefully outlines the terms and conditions of a lease. It is usually issued before the formulation of the accrual lease document as a way of preparing all parties for the conditions on which the deal is going to be negotiated. It is a precursor of a proper and formal lease document of sorts. However, clarity and lucidity must be maintained in a lease letter as well to avoid last minute confusions and discrepancies.
- A lease letter can state the intent of the landlord, if the object in question is a piece of land.
- A lease letter can also state dates of activation and termination if necessary.
- A lease letter can be one complete document or it can involve a series of communication and correspondences on both sides.
- It must set forth the major point of discussion like rent, the lessee’s payments, any modifications allowed, any security deposits needed and other such details.
- It is always better to have such a letter drawn up by one’s attorneys as they are legally binding and must be drawn with great care.
The advantages of lease letters are the fact that initial stages of the deal can be finalized without the risk of a written contract. It is always advisable to sort out issues between the parties in an informal manner rather than embarking directly on a legal contract. This way, the final legal contract will have the approval of both parties and confusion can be avoided.