Protecting Rental Income

This article examines some of the ways a landlord can seek to protect its rental stream.

One of the most important considerations for landlords is to protect the income stream when letting properties. Careful due diligence should be undertaken on potential tenants, however, as leases tend to be for several years in length, circumstances can change and tenants may find themselves unable to comply with their lease covenants. Leases in general, if drafted correctly will contain various provisions protecting a landlord against tenant default.

Rent Deposit

A rent deposit is a sum of money provided by a tenant to a landlord as security for payment of rent and performance of its lease covenants. The rent deposit monies are usually held in a bank account established and operated by the landlord. The rent deposit agreement details the circumstances in which a landlord can drawdown against this sum and the conditions that must be satisfied for the deposit to be repaid to