When leasing an office space, it’s common to be required to provide a deposit or other form of security. The deposit serves as a safeguard for the landlord in case of damage to the property or if rent is not paid as agreed. Typically, the deposit amounts to the equivalent of 3 to 6 months’ rent, though this can vary depending on the agreement and the landlord’s requirements. The deposit is usually placed in a blocked account under the tenant’s name, where the funds are protected and can only be accessed according to the terms of the agreement.

How Does the Deposit Work?

When you sign a lease, the deposit is paid into a specific account set up for this purpose. This account is blocked, meaning neither the landlord nor the tenant can withdraw the funds without mutual consent. When the lease term ends, the deposit will be returned to the tenant, provided all obligations have been met. However, deductions may be made if there is outstanding rent or if the property has damages beyond normal wear and tear.

Why is a Deposit Required?

The deposit provides the landlord with financial security when letting out office space. It serves as insurance against potential financial losses, whether from unpaid rent or repair costs due to damages. For the tenant, the deposit represents a commitment to upholding the lease agreement and maintaining the property. It can also motivate the tenant to keep the space in good condition throughout the lease period.

What Should You Consider Regarding the Deposit?

Before signing a lease, it’s important to clearly understand the deposit amount, how it should be paid, and the conditions for its return. Carefully read the contract and ensure the terms are explicit. It may also be wise to ask the landlord about alternative solutions, such as a bank guarantee or deposit insurance, if liquidity is a concern.

How We Can Assist You

Our advisors are ready to help you navigate the office rental market and find the best solution for your company. Whether you need assistance understanding the lease contract or want help finding new office space, we are here to guide you through the process. Contact us today for a non-binding conversation about how we can support you.