May
31
Should i be asked for a deposit on a long lease?
By
I am leasing a shop (4 year lease) , they want quaterly up-front payments, which is fine, but on top of that they want a deposit, of another 3 months, is this standard practice? as i cant afford, basically 6 months rent up-front. As far as im concerned quaterly up-front is as good as a deposit!
no, i know what a deposit is for. but im not giving the landlord an extra £2.5k that i may or may not see again….
Quick House Sale
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7 Comments
June 29th, 2010 at 4:45 am
Sounds a bit rough to me…..
July 2nd, 2010 at 4:19 am
the quarterly payment in advance is just that, a deposit is to cover any other eventualities that may occur and this is completely normal practice.
July 2nd, 2010 at 9:37 pm
I think it is pretty reasonable for a commercial lease. The ability for a landlord of a commercial property to re-rent a property is not done as quickly as with a residential property. I don;t think this is extreme at all.
July 3rd, 2010 at 1:03 pm
USUALLY FIRST LAST AND SECURITY…3 MONTHS, BUT EVERY LANDLORD IS DIFFERENT. THEY HOLD THE CARDS AND YES 6 MONTHS SEEMS WAY TO MUCH TO COLLECT.
July 6th, 2010 at 5:49 am
Sounds like you need more advise than just an answer to your question. It is normal for owners or their representatives to take a deposit. You have not said what the deposit is for? If you can’t afford an extra 3 months deposit how much cash reserve do you have to operate your shop? You should have a certain amount of cash to operate on until your shop is up and paying its’ own way. You also should make certain that you understand all the terms of the lease.
July 6th, 2010 at 11:29 am
It sounds reasonable to me. You seem to be confused about the funds. The deposit and the rent are not the same thing. Your upfront rent is just that, rent. The deposit is for any damage you may do to teh property and has nothing to do with rent.
July 9th, 2010 at 7:24 pm
its only doing business, why not? if its alarge dep. you can have the landlord set up bank acct. an draw interest. thats common in so. calif.