Entering a commercial lease is a key step for any business. At Howell Jones, our commercial property team provides expert guidance to help tenants navigate lease terms and protect their interests.
Landlords may request a rent deposit (also known as a security deposit) if they have concerns about a tenant’s financial or covenant strength. If this happens, we advise tenants to ensure the deposit is constituted by a rent deposit deed to formally protect the deposit and clarify the terms on which the landlord holds this money. Clear documentation helps avoid disputes or delays in recovering the deposit at the end of the lease.
A landlord might also ask for a personal guarantee, especially if the tenant is a newly formed or a financially weak company. A personal guarantee makes an individual, often a director, personally liable if the tenant defaults under the lease. This exposes individuals to significant personal risk.
Contact Howell Jones for Expert Guidance
At Howell Jones Surrey solicitors, we advise tenants on the implications of personal guarantees, including how to negotiate limits on their scope and duration. Our team works to secure fair lease terms that balance landlord demands with tenant protection.
Whether you are negotiating a new lease or renewing an existing one, please contact our commercial property solicitors in Surrey today on 0800 011 9813 for practical, expert advice tailored to your needs.
