[RPPTL Leasing Committee] Tenant credit enhancement issue [IWOV-Active.FID8106045]

[RPPTL Real Estate Leasing Committee]

Greetings! A novel issue has been presented and I would like some thoughts, please.

Residential multi-family landlord wants to lease units to tenants with marginal credit ratings. In order to do so, they have a surety company that for a premium will bond the amount of rent for a year.  The landlord proposes to pass the cost of the premium along to the tenant, who will pay that in addition to the market rent.

This is similar to PMI for a mortgage with a high LTV ratio.

Question: Do the premiums constitute security under 83.49?

David  Weisman
Partner
Board Certified Real Estate Lawyer
Greenspoon Marder LLP
200 E. Broward Blvd., Suite 1800
Fort Lauderdale, FL 33301
Phone 954-491-1120 Ext. 1015
Direct Phone 954-343-6941

David.Weisman at gmlaw.com<mailto:David.Weisman at gmlaw.com>
www.GMlaw.com<http://www.gmlaw.com/>

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