Commercial Program
Being a “landlord” issue, the security deposit clause in a commercial property lease is almost always drafted by the commercial property owner or the property management company, in what is traditionally thought to be a most favorable economic manner. Like most other lease provisions structured for a commercial property company’s benefit, the proposed language may be only a starting point for a fair and balanced outcome. Knowledge being power, the following AssureLease™ Tenant Deposit Insurance concept should serve as a useful adjunct that deals with the positive financial and economic benefits inherent in the utilization of the AssureLease™ product.It’s common knowledge that a leaseholder derives no particular benefit from posting a security deposit, other than its use as a means to conclude lease negotiations. A security deposit is merely part of that package of rights and duties that is traditionally called a lease. Every single term and condition of a lease is economic in nature; it takes no giant leap of the intellect to recognize that security deposits are merely a matter of dollar and cents. For a commercial property management company — it is purely dollars; for a leaseholder — it makes no economic or business sense.
For the commercial property company, AssureLease™ creates significant long-term economic and financial benefits. For the commercial leasee, AssureLease™ provides the virtual elimination of a considerable initial cash outlay, replacing same with an easily managed incremental monthly insurance payment that, depending on the commercial leasee’s financial circumstances, may have significant and long-term beneficial tax consequences. AssureLease LLC, the concept developer and designer, is able to provide a new and unique answer to this oft ignored and highly contentious aspect of lease crafting.