is it commonfor a landlord to request a good faith deposit prior to sending a lease on a retail space?

The deposit is fully refundable if the negotiations on the lease fail for some reason. If it is common, what would be a standard amount?
In Leasing Property - Asked by Miriam M. - Apr 19, 2013
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Answer(s)

Robert H.
Broker/Agent
Hattiesburg, MS

deposit is one month's rent and takes the property off the market. it is in your best interest to do so, and should include something in writing stating such. The deposit should be held by an agent.

Apr 20, 2013
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Jason P.
Owner/Investor
Costa Mesa, CA

i have not had a landlord ask for a deposit before sending out a lease for execution, but i can certainly see where that would be an intelligent strategy from a landlord. lots of times leases will go out for execution and will never sign. in the meantime the landlord may have turned away potential tenants because they felt they had a deal in place. in order to make sure you are serious and not just aggressively shopping, this is a smart strategy. I would fully negotiate that deposit though. I think one month is too much for this type of deposit. Because your lease calls for a security deposit, I would negotiate paying 1/2 months rent as good faith, with the rest of the deposit and first months rent to be delivered with the signed lease. I agree that the deposit should be accompanied by a written contract stating that this takes the space off the market.

May 10, 2013
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