How much security deposit should I expect to charge when creating a lease?
The typical security deposit in this market is two months of the lease rental rate, and occasionally owners will agree to one month. However, if the tenant is a new company, or if its assets are in a foreign country, he should expect to pay up to four to six months, some of which can be refunded under agreed-upon financial conditions. The owner holds the security deposit until the tenant has vacated and surrendered the property as required in the lease. Because the lease typically requires that the tenant repair the building before the end of the lease, we recommend that the tenant and owner do a walk-through of the property well in advance of vacating it so that a checklist of repairs can be created. If the owner is a professional property owner, or has a property manager, he may provide an estimated price for repairs, make the repairs, and deduct the cost from the security deposit. This relieves the tenant of the responsibility of managing the repairs and any problems with the qualit
