Financial position landlord is requiring security deposit

Assignment Help Operation Management

Reference no: EM131666639

You represent a three year old company and due to its weak financial position the landlord is requiring a security deposit equal to 6 months rent for a lease term of 3 years or 12 months rent for term of 7 years. Under either scenario the security deposit will be held for the term of the lease. The proposed rent will be $48,000.00 payable monthly and increasing in year 4 to $56,000.00 per year. The tenant does not want to have its money tied up for such a long period of time. Draft 3 alternatives the tenant may propose to the landlord for handling the security deposit and be sure to explain why each scenario is good for both the tenant and the landlord.

Reference no: EM131666639

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