A commercial deposit should have a defined purpose, holder, deduction standard, replenishment rule and return process.
Which payments should be separated?
- security deposit;
- advance rent;
- fit-out deposit;
- utility deposit;
- guarantee or bank security.
What should deduction rules cover?
- unpaid rent;
- damage;
- reinstatement;
- utilities;
- documented costs.
How should return work?
- handover inspection;
- final bills;
- written statement;
- payment deadline;
- dispute process.
Related commercial checklists cover the lease renewal checklist for deposit continuity, the property handover checklist for the return process, and lease due diligence for reviewing deposit terms before signing.
Where should you continue your research?
Use Commercial, Learn and the directory.
Separate every deposit in writing.
Require a signed reconciliation and supporting evidence.
Explore commercial propertyFrequently asked questions
Is a commercial deposit the same as advance rent?
No. Each payment should be identified separately.
Should deductions require evidence?
Yes. The lease should require a written reconciliation and supporting records.
What happens after assignment or renewal?
The agreement should state whether security transfers, is replaced or is returned.
Sources & References
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