Leveraging GenAI to Draft a Residential Property Lease--Part 3
Three Ways For Lawyers To Draft a Lease Using AI To Improve Productivity -- PART 3 MIRRORING AN EXISTING LEASE AGREEMENT
It’s difficult if not impossible to go through an entire day without hearing about GenAI. If you are not yet using it in your law practice, an easy way to start is by drafting a residential real estate lease with GenAI. For purposes of this article, I’ve used ChatGPT 4 as my GenAI platform or tool. The same approach will work with other platforms such as Claude, or whatever you feel most comfortable using. Just be certain that you have an understanding of the AI tool you are using, and an idea of its capabilities, limitations, and whether your input will be used to train the model, among other considerations. Remember that nothing will absolve you of your ethical and legal duty to your clients and the court.
In this 3-Part Article we’ll go through how to use three different methods to produce a residential lease agreement using AI:
Part 1. Direct Drafting the Lease Agreement in ChatGPT
Part 2. Iterative Collaboration
Part 3. Mirroring an Existing Lease Agreement
METHOD 3 -- MIRRORING AN EXISTING LEASE AGREEMENT
In the final part of the article we will draft a lease using our third method — mirroring an existing lease agreement.
The thing I love about this method is its flexibility, and extensibility. If you are the type of lawyer who likes to retain control but still wants to stay on the cutting edge and be competitive this might be your favorite method. Likewise, if you have an idea of where you want to start when drafting a document, but aren’t sure where you need to finish, this might become your favorite method. You can retain maximum control, but also gain some time savings. And you can still enjoy flexibility.
For this approach use a lease that you consider a good, solid document that has the terms you require, or at least the best one you have. It can be a lease you have drafted, someone in your firm has drafted, or even that you have obtained from another source, such as online or even from an opposing attorney that they have given you as part of their discovery. For this Article, I grabbed a lease off of the internet. It has a lot of provisions, including some I don’t want to keep, but we’ll get to that.
Advantages:
· Extensibility / Flexibility: this is probably my favorite method to draft a lease. It is flexible and efficient. You can use this as a sort-of efficient template, or you can use it to help fine-tune a document you like but don’t feel is perfect yet.
· Consistency: Maintains the structure and language of your preferred template.
· Precision: Allows for targeted adjustments, ensuring compliance with local regulations.
· Efficiency: Once you have provided your preferred lease, you can simply type into the user interface the new specifics, and you will have your next lease.
Disadvantages:
This works most efficiently if you already have a solid lease in a format that that you can attach or that you can cut and paste into the AI tool. But if you don’t already have a useable lease, go grab one off the internet, or go through the process of drafting one through either Method 1 or Method 2.
Best For:
This approach is ideal for those with established legal documents that need slight modifications to align with different jurisdictions or properties; and for those who are knowledgeable about the type of document they are drafting, but want a quick and easy way to modify it for different settings, jurisdictions, and otherwise.
How This Process Might Look:
There are two ways to use this process.
First: The first is straightforward. After logging in to your AI platform either attach a word processor version such as .docx or PDF (.pdf) of your lease, or scan it in and paste it into your platform’s interface.
Once you have fed a useable, readable document into your AI tool’s user interface, you can then give your AI model instructions to change the relevant terms such as the address, dates, property description, and otherwise. You can then reuse this document as necessary for all your subsequent leases.
At first glance this might seem like a simple template feature. It is, but it’s not. The thing that makes this infinitely more useable than a template feature is how much less work you or your assistant are required to do. You don’t have to add the specific information into certain fields in a database, or insert them into the document at the correct locations. Rather, you can just type instructions into the interface screen. Your AI tool will then make all of the changes and insert the information into the correct locations in the lease. You can also ask your AI tool to change the level of formality, take out certain phrases or clauses, or change the jurisdiction and the laws and clauses that go with it. The important caveat is to review the output you receive. And not just for flow and grammar, which has caused some lawyers unnecessary grief.
Second: The second is a hybrid of the first process, above, and the process of iterative collaboration. If you look at my example lease, it has a number of provisions that I would not actually use unless there was a very specific purpose. When I asked ChatGPT 4 to use my lease as a starting point to draft a new lease it modified the lease by condensing provisions, and removing others. At this point if I had started with a very tight, solid lease, I could have told ChatGPT to use my document without modifying any provisions. I could then instruct it to use the lease but add in the current information such as the tenant, property address, and rental price. And then use it as a faster, easier template lease agreement.
But the document that ChatGPT responded with is a better lease. It is more concise, and takes out or combines unnecessary terms. But I needed to know how, precisely, it was changed so I asked what provisions had been taken out. It provided a summary of provisions. I could have asked for a specific list, or a copy of the lease that was red-lined, or whatever I wanted to see. I also asked if it had a certain provision—an integration clause—since I used that as an example with the other 2 methods. Since it did not have an integration clause I instructed that one be added. If you check out my conversation with ChatGPT it just gave me a clause I could use, and told me why I might want one. I instructed it instead to add the clause directly into the lease. The process could have continued with me asking to add in more clauses, or make other changes as needed. Another change I made was asking ChatGPT to include a section limiting occupancy to 5 persons, and adding a space for each name. It quickly returned a modified lease. If I were using this lease for a client, I would have continued to modify it. But this gives you an idea of how to use this technique.
Once you have the document you want to use in this “hybrid” method, type in the specific information such as the property description, rental price, and names of rental properties, and task ChatGPT with adding those. I typed the specific, relevant information in, and within seconds I had my finalized lease.
Here’s how my chat went:
Note: I used a plug-in to copy and paste my chat from ChatGPT to Substack. It threw in some strange characters; I believe I got them all out. Also, due to the constraints of SubStack’s word processing platform, numbered and bullet-point lists are not shown in the “code block” format, but were still part of the output from ChatGPT 4.
ChatGPT 4
ME: Residential Real Property Lease As Example.docx [This is the actual document I attached]
I want your help drafting a residential real property lease, using a lease I already have.
ChatGPTBased on the provided lease agreement example, I will draft a template for a residential real property lease agreement. Note that this is a generic template and it's important to customize it according to your specific needs, legal requirements, and local laws. Also, consulting with a legal professional to ensure the lease complies with local regulations and adequately protects your rights is recommended.RESIDENTIAL REAL PROPERTY LEASE AGREEMENTThis Lease Agreement is made and entered into this ____ day of ____________, 20__, by and between _____________________________________________________________________ (hereinafter referred to as "Owner") and _____________________________________________________________________ (hereinafter referred to as "Resident(s)").Property Address: _____________________________________________________________________Lease Term: This Agreement shall commence on the ____ day of ____________, 20__, and shall continue (check one): on a month-to-month basis until either party decides to terminate, given proper notice according to local laws.
until the ____ day of ____________, 20__, at which time this Agreement may be renewed or terminated.
Rent: Resident(s) agrees to pay a monthly rent of $_____________, due in advance on the first day of each month. Rent shall be paid to the Owner at the following address: ________________________________________________________________.Late Fee: A late fee of $_____________ will be charged for any rent payment received after the ___ day of the month.Security Deposit: A deposit of $_____________ is required for securing the Resident's compliance with the terms of this Agreement. The deposit will be refunded according to local laws, less any deductions for damages or unpaid rent.Utilities: Resident(s) is responsible for the payment of all utilities associated with the property unless otherwise specified herein.Maintenance and Repairs: Resident(s) agrees to maintain the premises in good condition, report any needed repairs, and refrain from causing any damage to the property. Specific responsibilities include:Keeping the dwelling clean and sanitary.
Promptly notifying the Owner of any damages or necessary repairs.
Taking reasonable care of the property and making minor repairs at their expense.
Pets: (If applicable) Resident(s) agrees to pay a non-refundable pet fee of $_____________ per pet. No pets known to be dangerous or with a history of causing harm are permitted on the premises.Alterations: Resident(s) shall not make any alterations or improvements to the property without the prior written consent of the Owner.Subletting: Resident(s) agrees not to sublet any part of the property or assign this Agreement without the Owner's prior written consent.Termination: This Agreement may be terminated by either party by providing at least ____ days' written notice before the end of the monthly rental period.Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of __________________________.Additional Terms: _____________________________________________________________________Acknowledgment: The parties acknowledge having read and understood this Agreement and agree to abide by its terms and conditions.IN WITNESS WHEREOF, the parties have executed this Lease Agreement on the date first above written.Resident: ___________________________________________Resident: ___________________________________________Owner: _____________________________________________Make sure to review and adjust this template to fit your specific circumstances and legal requirements. It's always best to have a legal professional review your lease agreement before finalizing it.ME: Were any provisions of the lease I attached removed?
ChatGPTIn the template I provided, I summarized and simplified the content from the original lease agreement you shared, focusing on the core elements typical in residential lease agreements. Some specific provisions and clauses from the original document were either generalized or not included in the template to make it more concise and adaptable. For example:Late Fee and Bad Check Charges: The template included a general late fee provision but did not specify charges for bad checks.
Appliances: The original lease's detailed stipulations about appliances and their maintenance were not included.
Discount for Early Rent Payment and Maintenance: The template did not include the incentive for early payment and taking on maintenance responsibilities.
Extra Visitors: The fee for additional occupants beyond those agreed upon was omitted.
Cleaning and Inspection Requirements: Detailed cleaning obligations and the requirement for a 3-day inspection period were not specified.
Vehicles: Restrictions on parking and vehicle types were not included.
Pet Policy: The template mentioned pets briefly but did not detail the fee structure or the policy for unregistered pets.
Utilities and Other Bills: The responsibility for utilities was mentioned, but without the detailed provisions about transferring utility bills to the Resident's name.
Subletting and Assignment: The template included a provision against subletting without owner permission, but it was less detailed.
Default, Bankruptcy, and Renewal Terms: These specific clauses were not included in the simplified template.
The intention was to create a more streamlined template that covers fundamental aspects of a lease agreement. However, depending on your needs and legal requirements, you might want to reintroduce certain specifics or consult with a legal professional to ensure the agreement is comprehensive and compliant with local laws.ME: Is there an integration clause in the agreement you just provided?
ChatGPTThe template I provided did not explicitly include an integration clause. An integration clause is important in legal documents, as it clarifies that the written agreement represents the complete and final agreement between the parties and supersedes all previous negotiations, promises, or agreements, whether oral or written.To add an integration clause to the lease agreement template, you could include a section like the following:Entire Agreement: This Lease Agreement constitutes the entire agreement between the parties and supersedes all prior understandings, agreements, or representations, either oral or written, relating to the subject matter of this Agreement. No amendment, alteration, modification of, or addition to this Agreement shall be binding unless expressly agreed to in writing by both parties.You can insert this clause at an appropriate section of the agreement, often near the end, before the acknowledgment or signature section. This will ensure that all parties are aware that the written contract is the definitive record of their agreement.ME: Would you please provide a new lease with the integration clause, and customize it for a lease within the state of Iowa?
ChatGPTCreating a residential lease agreement customized for the state of Iowa and including an integration clause involves addressing specific legal requirements unique to Iowa. I'll incorporate the necessary elements and an integration clause into the template. Note, however, that while this template will be more tailored to Iowa, it's crucial to consult with a legal professional to ensure compliance with Iowa law and to fully protect your rights as either a landlord or tenant.RESIDENTIAL LEASE AGREEMENTThis Lease Agreement is made this ____ day of ____________, 20__, by and between _____________________________________________________________________ ("Owner") and _____________________________________________________________________ ("Resident(s)") concerning the property located at _____________________________________________________________________ ("Premises").Term: The lease commences on the ____ day of ____________, 20__, and shall terminate on the ____ day of ____________, 20__. Following the termination date, the lease may either be renewed or ended per agreement by both parties.Rent: The monthly rent of $_____________ is payable to the Owner at the following address: _________________________________________________________. Rent is due on the first day of each month.Late Fees: If rent is not paid by the fifth day of the month, a late fee of $_____________ will be incurred. According to Iowa law, late fees should not exceed $12 per day or $60 per month, whichever is less.Security Deposit: A security deposit of $_____________ is required at the time of lease signing. This deposit will be held in accordance with Iowa law and may be used to cover damages or unpaid rent. The Owner will return the deposit, less any lawful deductions, within 30 days after the termination of the lease.Utilities: Resident(s) is responsible for all utilities associated with the Premises unless otherwise specified.Maintenance and Repairs: The Resident(s) agrees to maintain the Premises in a clean and sanitary condition and to promptly report any damage or need for repairs to the Owner. The Owner is responsible for repairs to the structure and mechanical systems unless damage is caused by the Resident(s)'s negligence.Pets: Pets are allowed not allowed. If allowed, a non-refundable pet fee of $_____________ per pet will be charged, subject to restrictions and approval by the Owner.Alterations: The Resident(s) shall not make alterations to the Premises without the Owner's written consent.Subletting: Subletting or assignment of the lease is prohibited without the Owner's prior written consent.Governing Law: This Agreement is governed by the laws of the State of Iowa.Entire Agreement: This Lease Agreement, including any attachments and addenda, constitutes the entire agreement between the parties regarding the rental of the Premises and supersedes all prior negotiations, agreements, or representations. Any modifications to this Agreement must be in writing and signed by both parties.Signatures:Resident: ______________________________________ Date: ________________Resident: ______________________________________ Date: ________________Owner: _________________________________________ Date: ________________This template includes provisions common to residential lease agreements and has been customized with considerations for Iowa law, such as handling of the security deposit and late fees. Remember, it's essential to review this document with a legal professional to ensure it fully meets your needs and complies with Iowa's specific requirements.ME: Great, thanks! Now, will you please customize the lease agreement to specify the property address of 555 Anywhere Street, Grimes, Iowa 50111, monthly rental of $1,200, a security deposit of $2,000, and late fees of $10 per day after the 5th day. Please add the owner's name of XYZ Properties, LLC, to be signed by its representative Amy Swaner.
ChatGPTCertainly! Below is the customized residential lease agreement with the specified details for the property located at 555 Anywhere Street, Grimes, Iowa 50111, including the monthly rent, security deposit, late fees, and the owner's information.RESIDENTIAL LEASE AGREEMENTThis Lease Agreement is made this ____ day of ____________, 20__, by and between XYZ Properties, LLC, represented by Amy Swaner ("Owner") and _____________________________________________________________________ ("Resident(s)") concerning the property located at 555 Anywhere Street, Grimes, Iowa 50111 ("Premises").Term: The lease commences on the ____ day of ____________, 20__, and shall terminate on the ____ day of ____________, 20__. Following the termination date, the lease may either be renewed or ended per agreement by both parties.Rent: The monthly rent is $1,200, payable to the Owner at the following address: _________________________________________________________. Rent is due on the first day of each month.Late Fees: If rent is not paid by the 5th day of the month, a late fee of $10 per day will be incurred, not to exceed the limitations set forth by Iowa law.Security Deposit: A security deposit of $2,000 is required at the time of lease signing. This deposit will be held in accordance with Iowa law and may be used to cover damages or unpaid rent. The Owner will return the deposit, less any lawful deductions, within 30 days after the termination of the lease.Utilities: Resident(s) is responsible for all utilities associated with the Premises unless otherwise specified.Maintenance and Repairs: The Resident(s) agrees to maintain the Premises in a clean and sanitary condition and to promptly report any damage or need for repairs to the Owner. The Owner is responsible for repairs to the structure and mechanical systems unless damage is caused by the Resident(s)'s negligence.Pets: Pets are allowed not allowed. If allowed, a non-refundable pet fee of $_____________ per pet will be charged, subject to restrictions and approval by the Owner.Alterations: The Resident(s) shall not make alterations to the Premises without the Owner's written consent.Subletting: Subletting or assignment of the lease is prohibited without the Owner's prior written consent.Governing Law: This Agreement is governed by the laws of the State of Iowa.Entire Agreement: This Lease Agreement, including any attachments and addenda, constitutes the entire agreement between the parties regarding the rental of the Premises and supersedes all prior negotiations, agreements, or representations. Any modifications to this Agreement must be in writing and signed by both parties.Signatures:Resident(s):
___________________________________ Date: ________________Owner (XYZ Properties, LLC, by Amy Swaner): ___________________________________ Date: ________________Please ensure to fill in any blanks, and adjust any sections as necessary to fit your specific situation. It's also recommended to have this document reviewed by a legal professional familiar with Iowa law to ensure its compliance and adequacy for your needs.ME: Also, please include a section that limits the occupancy of the unit to only the specific people listed in the lease, and then add 5 lines to write the names of the occupants.
ChatGPTAbsolutely, I'll add a section to limit the occupancy to specific individuals listed in the lease and include lines for writing the names of the occupants.RESIDENTIAL LEASE AGREEMENTThis Lease Agreement is made this ____ day of ____________, 20__, by and between XYZ Properties, LLC, represented by Amy Swaner ("Owner") and _____________________________________________________________________ ("Resident(s)") concerning the property located at 555 Anywhere Street, Grimes, Iowa 50111 ("Premises").Term: The lease commences on the ____ day of ____________, 20__, and shall terminate on the ____ day of ____________, 20__. Following the termination date, the lease may either be renewed or ended per agreement by both parties.Rent: The monthly rent is $1,200, payable to the Owner at the following address: _________________________________________________________. Rent is due on the first day of each month.Late Fees: If rent is not paid by the 5th day of the month, a late fee of $10 per day will be incurred, not to exceed the limitations set forth by Iowa law.Security Deposit: A security deposit of $2,000 is required at the time of lease signing. This deposit will be held in accordance with Iowa law and may be used to cover damages or unpaid rent. The Owner will return the deposit, less any lawful deductions, within 30 days after the termination of the lease.Occupancy: Occupancy of the Premises is limited to those individuals specifically listed in this Agreement. The Resident(s) agrees that no other persons will live at the Premises without prior written consent from the Owner. The following individuals are authorized to occupy the Premises:Utilities: Resident(s) is responsible for all utilities associated with the Premises unless otherwise specified.Maintenance and Repairs: The Resident(s) agrees to maintain the Premises in a clean and sanitary condition and to promptly report any damage or need for repairs to the Owner. The Owner is responsible for repairs to the structure and mechanical systems unless damage is caused by the Resident(s)'s negligence.Pets: Pets are allowed not allowed. If allowed, a non-refundable pet fee of $_____________ per pet will be charged, subject to restrictions and approval by the Owner.Alterations: The Resident(s) shall not make alterations to the Premises without the Owner's written consent.Subletting: Subletting or assignment of the lease is prohibited without the Owner's prior written consent.Governing Law: This Agreement is governed by the laws of the State of Iowa.Entire Agreement: This Lease Agreement, including any attachments and addenda, constitutes the entire agreement between the parties regarding the rental of the Premises and supersedes all prior negotiations, agreements, or representations. Any modifications to this Agreement must be in writing and signed by both parties.Signatures:Resident(s):
___________________________________ Date: ________________Owner (XYZ Properties, LLC, by Amy Swaner): ___________________________________ Date: ________________Be sure to complete all sections, especially the lines for the authorized occupants, to ensure clarity and enforceability. Reviewing this document with a legal expert familiar with Iowa's residential lease laws is advisable to ensure it fully protects both parties' rights.This was just a brief example to get you started. It’s not intended to be a representation of an ideal lease for Iowa or any other location. I could have asked ChatGPT to add citations to the Iowa Code, but for purposes of this residential real property lease, it didn’t seem necessary or appropriate.
Also keep in mind that you can copy and paste your final draft into your GenAI tool and ask it to check for spelling, grammar, or if it’s missing any important clauses. Although you cannot rely completely on this method—no technological solution will absolve your obligation to produce high-quality legal work—I’ve started doing this for all my writing.
Check out the 2 other methods of using ChatGPT to improve your efficiency and productivity: Method 1 (Direct Drafting) or Method 2 (Iterative Collaboration).