The Benefits of Requiring a Security Deposit from a Sublessor

As a responsible person, it is very important to protect your investment at all times, no matter the circumstances. That’s why it’s important to require a security deposit from a sublessor.

When we talk about a security deposit, what we are talking about is the money that a tenant deposits with the landlord as security for the terms of the lease for the full performance of the lease. A sublease is a lease executed by a tenant to a third party, but for a much shorter period of time.

It is important to get that security deposit due to the unpredictability of future events. Who knows if the tenant can irresponsibly leave without paying? That would leave him without some of the money owed.

Alternatively, what happens if the subtenant inflicts damage on the property? That could also cause you to lose money. There would be no way to recover these funds and it would represent a loss. Instead, it’s easy to protect yourself by simply collecting a security deposit.

Security deposits are actually a legal requirement in some places, depending on where the lease is signed. Just be careful to go ahead and get your deposit up front. It will relieve so many headaches and potential stress.

Write the deposit on the contract and collect it immediately. That will protect and prevent the property from being irreparably damaged and will also protect your peace of mind, finances and liability.