Security deposits are amounts of money held by landlords on both residential and commercial leases that occur if a tenant damages the property or does not totally fulfill lease terms. Essentially, they are ways for landlords to protect themselves if a tenant does not pay rent or defaults on payment. The security deposit is often returned once the tenant vacates the property if there are no damages and they fulfilled the lease.
However, not all leases and security deposits are for sale. Residential tenant law and commercial tenant law both allow parties freedom to negotiate the terms of the contract (we recommend consulting a corporate law firm in Miami before doing so). Thus, there may not be any statutory limit on amounts that landlords can require for properties even though including one is not required (however, it is standard).
How much a security deposit is will vary based on each situation, so if you have questions regarding security deposits and commercial leases, it is best to consult with an M&A attorney in Miami. Some landlords will ask for one month’s rent, or even a month and a half of rent.
Companies with great finances and a good track record of payments may see smaller security deposits. However, small businesses or startups with little to no credit history can expect to have much higher deposits. Again, this amount will vary from situation to situation.
This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided during an attorney-client relationship and is not intended to substitute for legal advice.