LeasePlain Methodology
How we evaluate lease clauses, assign risk scores, and structure our analysis — and where the limits of AI-powered review lie.
How the Analysis Works
When you upload a lease, LeasePlain processes it through several stages: OCR extraction (for scanned documents), clause identification, plain-English interpretation, risk assessment, and structured output generation.
The AI model powering this analysis is a large language model (LLM) trained on legal documents, tenancy legislation, and residential lease templates from Canadian provinces and US states. It identifies clause types, extracts key terms, interprets their meaning in context, and flags items that deviate from standard practice or that carry tenant risk.
Our analysis is structured around six categories designed to give you a complete, actionable picture of your lease — from the basic terms to the negotiable details.
Risk Scoring Framework
Individual clauses are assigned one of three risk levels. Here is what each means:
Clauses that could expose tenants to significant financial liability, restrict fundamental tenant rights, or that may violate applicable tenancy legislation.
Examples:
- Clauses waiving the landlord's maintenance obligations
- Automatic rent increases significantly above guideline amounts
- Personal liability clauses that exceed what law allows
- No-subletting clauses where subletting rights are legally protected
Clauses that are legally permissible but require careful attention, impose meaningful obligations, or are commonly negotiated.
Examples:
- Late fees that are significant but within legal limits
- Strict notice requirements for repairs
- Pet restrictions and associated fees
- Limitations on guest stays
Standard, commonly used clauses that impose ordinary obligations and are unlikely to cause unexpected issues for tenants who understand them.
Examples:
- Standard notice-to-vacate requirements
- Routine maintenance responsibility assignments
- Typical security deposit terms within legal limits
- Standard quiet hours provisions
Six Analysis Categories
1. Lease Summary
Extraction and plain-English presentation of core lease terms: parties, property, term dates, rent amount, due dates, and renewal provisions.
2. Financial Terms
All monetary obligations: security deposit, last month's rent, rent increases, late fees, NSF charges, parking fees, utilities, and any other costs the tenant bears.
3. Red Flags
Clauses that are unusual, potentially unenforceable, significantly one-sided, or that deviate materially from standard residential lease terms in the relevant jurisdiction.
4. Unclear Clauses
Ambiguous, vague, or contradictory language that could be interpreted multiple ways — a common source of tenant-landlord disputes.
5. Questions to Ask
Specific, actionable questions the tenant should raise with the landlord before signing, derived from the actual content of the lease being analyzed.
6. Negotiation Points
Clauses commonly negotiated by tenants, with context on what changes are realistic to request and what concessions landlords typically offer.
Interpretation Framework
For each identified clause, the AI applies a consistent interpretation framework:
- 1
Identify clause type
What category of provision is this? (financial, maintenance, termination, occupancy, etc.)
- 2
Extract key terms
What specific obligations, amounts, dates, or conditions does the clause create?
- 3
Translate to plain English
What does this clause actually require of the tenant, in everyday language?
- 4
Compare to standard practice
Is this clause typical for the relevant jurisdiction, or does it deviate from standard lease terms?
- 5
Assess tenant impact
What is the potential financial, legal, or practical impact on the tenant if this clause is enforced?
- 6
Assign risk level
Based on the above, what risk level does this clause represent for the tenant?
Known Limitations
We are committed to being transparent about what our methodology cannot do: