Rent Deposits and guarantees
When a lease is granted the landlord may ask for a rent deposit as a security for the payment of rent. This is a matter of negotiation but is very common.
In some cases, the landlord may be concerned about the financial status of the tenant. For example, if the tenant is a private limited company, one or more directors may be required to be personal guarantor’s of the company’s obligations under the lease.
this may be an alternative to the tenant providing an individual guarantor.
When a tenant assigns premises he may be required to guarantee the obligations of his assignee. These are complex matters that require detailed advice in the light of the particular circumstances of the case.