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

[RPPTL Real Estate Leasing Committee]

No.  Because this bond is to secure only the payment of rent, it is in the
nature of advance rent.  It is not a security deposit to cover damages to
the premises and such other applications as may be addressed in the lease.
The landlord would still want to require a normal security deposit.

 

Warren P. Gammill, Esq.

Warren Gammill & Associates, P.L.

Suite 400, Courthouse Plaza

28 West Flagler Street

Miami, Florida 33130

Telephone: 305-579-0000

Telecopier: 305-371-6927

 <mailto:Gammill at MiamiLawOffice.com> Gammill at MiamiLawOffice.com

Website:  <http://www.gammilllaw.com/> www.gammilllaw.com

 

 

 

From: landten-bounces at lists.flabarrpptl.org
<landten-bounces at lists.flabarrpptl.org> On Behalf Of RPPTL Real Estate
Leasing Committee
Sent: Thursday, October 1, 2020 1:00 PM
To: landten at lists.flabarrpptl.org
Subject: [RPPTL Leasing Committee] Tenant credit enhancement issue
[IWOV-Active.FID8106045]

 

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

 

 <mailto:David.Weisman at gmlaw.com> David.Weisman at gmlaw.com

 <http://www.gmlaw.com/> www.GMlaw.com

 



 

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