Security Deposits in a Commercial Lease
Just like a residential rental or lease, your commercial landlord is going to insist on a security deposit. The security deposit can be used by the landlord for a number of reasons, but most commonly it will be used to cover any damage at the end of your lease if you do not renew your agreement.
Unlike residential leases, there aren't any laws that govern how much a commercial landlord can ask for a security deposit. Your landlord may ask for a very large deposit; how much depends on you bargaining power. Additionally, you landlord may earn interest on your security deposit, and unless you work it into your lease, you won't see any of that additional income.
As a result of the rather lax legal setting, you will want to include (as much as possible) favorable security deposit terms in your commercial lease. The articles below address this issue in detail.
Just like a residential rental or lease, your commercial landlord is going to insist on a security deposit. The security deposit can be used by the landlord for a number of reasons, but most commonly it will be used to cover any damage at the end of your lease if you do not renew your agreement.
Unlike residential leases, there aren't any laws that govern how much a commercial landlord can ask for a security deposit. Your landlord may ask for a very large deposit; how much depends on you bargaining power. Additionally, you landlord may earn interest on your security deposit, and unless you work it into your lease, you won't see any of that additional income.
As a result of the rather lax legal setting, you will want to include (as much as possible) favorable security deposit terms in your commercial lease. The articles below address this issue in detail.
Articles on Commercial Lease Security Deposits
Articles on Commercial Lease Security Deposits
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How Landlords Use Security Deposits in Commercial Real Estate
Get the basics on the purpose of the security deposit in a commercial lease.
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Using a Letter of Credit (Not a Security Deposit) for Commercial Property
In some cases, a bank will guarantee payment to the landlord in lieu of a cash deposit from you.
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Getting Your Security Deposit Back When Renting Commercial Space
You should get your deposit back at the end of your lease, and you may even be able to get it earlier.
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More Legal Topics
- Auditing Your Commercial Lease
- Building Compliance in Commercial Leases
- Commercial Leases: Letter of Intent
- Commercial Net Leases
- Commercial Real Estate Brokers
- Expansion and Improvements in a Commercial Lease
- Gross Commercial Leases
- Shared Expenses in a Commercial Lease
- Terms in a Commercial Lease
- Using a Lawyer for a Commercial Lease Agreement
- Auditing Your Commercial Lease
- Building Compliance in Commercial Leases
- Commercial Leases: Letter of Intent
- Commercial Net Leases
- Commercial Real Estate Brokers
- Expansion and Improvements in a Commercial Lease
- Gross Commercial Leases
- Shared Expenses in a Commercial Lease
- Terms in a Commercial Lease
- Using a Lawyer for a Commercial Lease Agreement
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