Estate Agents

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Commercial Property Services

Rent Deposits

A rent deposit is principally a sum of money which is held in an account, for an agreed period of time, to act as financial security in case of default by a party to a contract.

 
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The money would usually earn interest at a fixed or variable rate. When new leases are entered into, a landlord will often require a rent deposit from the in-going tenant.

The terms of such a rent deposit will vary depending on the financial status of the tenant, but can involve the tenant paying up to 6 months rent in advance.

This amount is then held by the landlord in an interest bearing account for the duration of the lease, or until the financial integrity of the tenant becomes established.

Alternatively, it might be held until such time as the lease is assigned and a new deposit is obtained from the subsequent assignee.


- Christo & Co -
Commercial and Residential property specialists, estate agents, valuers and surveyors
in Kentish Town, Camden Town and throughout North & North West London

66-70 Parkway, London, NW1 7AH - Tel: 020 7482 1203 - Fax: 020 7482 4441
- Web: www.Christo.co.uk