How much security deposit can a landloard charge for a space in a plaza?

Question

My friend is leasing a space in a plaza for $2400 a month. When he signed the lease, the owner wanted $15000 deposit. It this ligitimate legally? Is there some rule to go by? such as in renting an apartment, they cannot charge more than 2X the rent. In this case it is a business being bought that is on this plaza.

Answer 1

Bostonian's right. I wrote dozens of "standard" commercial leases for my former clients who leased commercial space. Then I re-wrote them for every single tenant to whom my clients leased a unit.

It isn't the damage deposit that gets you, it is the "triple net" provision and the "promotional surcharge" that are the two biggest ways you end up paying through the nose. Another very expensive item for a tenant that landlords love is "business interruption insurance," even though the landlord doesn't make a dime off of it. My former clients were often willing to drastically cut (and sometimes even completely waive) the damage deposit so long as the lease was triple net, there was a promotional surcharge on all sales, and there was a business interruption insurance provision.

If you don't know what those three things I named are, then you need to see a local real estate attorney who has experience negotiating commercial leases.

Answer 2

There are few if any restrictions on commercial leases, unlike residential leases. It's presumed that a business person is savvy enough to know their way around a commercial lease or knows well enough to have an attorney review it.

You can negotiate anything. If the LL is asking for $15k, counter with $2k and work from there.

Answer 3

Unless there is some state law limiting the security deposit, the landlord can charge as much as he can get.

Try negotiating the terms of the lease. If it is too expensive, go somewhere else.

Answer 4

definite, the owner can cost you the surplus quantity. one factor that's recommended to look into is how previous the carpet became into once you moved in; if the carpet became into form new, in straightforward terms then can he cost you the total fee of replace. Carpet has an expected life span (differs state-to-state, yet frequently approximately 10 years), and the owner can in straightforward terms cost you for the relax "life" of the carpet. as an occasion, if the carpet have been 5 years previous once you moved in, then you definately are in straightforward terms answerable for a million/2 the fee. If the carpet have been 7 years previous, you're answerable for 30%. If the carpet have been better than 10 years previous, you may't be held accountable, in spite of how broken the carpet is, because of the fact that's seen as desiring to get replaced, besides. definite, the owner could desire to offer you an itemized record of damages, frequently interior of 30 days, yet varies state to state. If he does not, maximum states restrict him from witholding any element of the deposit, and additionally you may desire to write a call for letter and supply him yet another 30 days. in straightforward terms after that factor are you able to take him to court docket to get well, each so often for 3x the fee (back, relies upon on state). do slightly prognosis into how previous the carpet became into once you moved in and calculate your truly fee of replace. whether it continues to be over $1k, he can actual call for the adaptation and sue you for it in case you do not comply.