Use Terms "Landlord" and "Tenant" in Lease

When drafting leases or lease amendments, use the terms “landlord” and “tenant,” rather than “lessor” and “lessee,” to avoid confusion, suggests James V. Persino, a Chicago-based commercial property developer. It's difficult to confuse or mishear “landlord” and “tenant,” as opposed to “lessor” and “lessee,” especially if you aren't familiar with legal terms.

If the terms “lessee” or “lessor” are misused in the lease—or interchanged in the transcription of the lease—you could end up with serious problems later, warns Persino. For example, if the lease says the lessor is responsible for repairing the roof, but you meant to say the lessee is responsible for doing so, the tenant may insist that you're responsible for such repairs. You may be forced to waste time and money convincing a court of your intentions or absorbing the repair costs.

Typically, tenants don't object to using the terms “landlord” and “tenant.” But if a national tenant insists that you use its form lease, which contains the terms “lessor” and “lessee,” use the terms “landlord” and “tenant” in any language inserted in or added to the form lease, and include language explaining that the terms “landlord” and “tenant” mean the same thing as their respective counterparts, “lessor” and “lessee,” stresses Persino.