QUESTION
Does a landlord of a commercial property legally have to put a tenants security deposit into a account that occurs interest?
Asked on Nov 15th, 2011 on Business Law - Minnesota
More details to this question:
I know legally a landlord has to put security deposits into an account that collects interest for residental property but could not find if a landlord has to do the same with commercial property.
1 ANSWER
William/J Joanis
The provisions of 504B relate to residential property. They provide protection to consumers who provide security deposits to landlords. Commercial leases are left to common law in that regard. You may be surprised how little it costs to have these kinds of issues addressed by your lawyer. I know that while our firm charges $150/Hr for lawyer time, most clients find a net savings on having contracts reviewed before there is a problem. I am on monthly retainer for a publicly traded Chinese company for just that purpose. To avoid expensive legal problems before they happen. Trust me, Chinese businesses don't give money away unless they can quantify the value.
Answered on Dec 25th, 2011 at 6:08 PM