[Injoy]

Hi All,

I have a question on Security Bond for Office Suites. Can we put the security bond for office suites to the rental bond board? As we don't want to go through the trouble calculating the interest by the time when the tenants terminating the lease and having the security bond refunded to them.
Thanks
Louie

[Beau Miller]

Hi Louie,
I am not an expert on commercial leasing but I have a couple of questions that might help me to help you.
Would a Security Bond for an Office Suite normally earn interest?
Is it a requirement to pay the interest out to the tenant at the end of the lease?
Which state / territory / region are you located?

Anything extra that you can add to help me understand would be useful.

Thanks,
Beau

[Injoy]

Hi Beau,

I am new in the industry and I know nothing about security bond for office suite.

However, when our Agency took over the management from the previous managing agent recently. They posted us some cheques in relation to the security bonds that the tenants paid. But the amount was a little more as there was interested earned over the period. I don't know whether it is the standard practice throughout the industry or it's just this particular Agency's own practice.

What does your Agency normally do when it comes to security bonds for office suites?

By the way, we are located in Sydney NSW.

Regards
Louie Ng
Injoy Realty

[Ken]

Depends what you have written in the lease.. Many commercial agents disburse the bonds to the actual landlord to the end of the tenancy.. Many set up bank accounts if they are longer term.. If its retail it needs to be lodged with the retail tenancy bond board (NSW) I would think you could fill in the form and send it in but it would depend on whether the lease stipulates that the bond will be invested or not ?

[Injoy]

Hi Ken,

Thank you for your advice.

Louie