Security deposits are sums of money that landlords keep on hand for both residential and commercial leases in the event that a tenant causes damage to the property or does not completely uphold the terms of the lease. In essence, they serve as safeguards for landlords in the event that a tenant defaults on payment of rent. If there are no damages and the tenant has complied with the lease, the security deposit is frequently returned when they leave the premises.
Not all leases and security deposits are offered for sale, though. Both residential and commercial tenants are free to negotiate the terms of the lease under the applicable laws. As a result, even though including one is not required, there may not be any statutory limit on the amounts that landlords can demand for properties, which is why we recommend consulting a corporate law firm in Miami before negotiating the terms of a contract.
The amount of a security deposit will vary depending on the circumstances, so it is best to speak with a Miami M&A Attorney if you have any questions about security deposits and commercial leases. One month’s rent or even one month and a half’s rent may be requested by some landlords.
Smaller security deposits might be required from businesses with strong financial standing and a history of on-time payments. Small businesses or startups, on the other hand, can anticipate having much higher deposits. Once more, the exact amount will depend on the circumstances.
Alvarez & Diaz-Silveira LLP is a leading provider of international and domestic M&A, finance, real estate and corporate immigration. For more information, visit us online or call (305) 740-1940.