This office lease clause states that the amount of the security deposit shall be increased to reflect the increase in Base Rent. The Owner shall at all times have and maintain two full months' Base Rent as security.
The Indiana Clause Providing for the Periodic Increase in the Tenant Security to Reflect Increases in Base Rent is a legal provision that allows landlords in Indiana to adjust the security deposit amount depending on any increases in the base rent during the term of the lease agreement. This clause aims to ensure that the security deposit remains proportional to the rental amount, protecting the landlord's interests in case of damages or unpaid rent. Under this clause, the landlord has the right to periodically increase the tenant's security deposit to reflect any growth in the base rent. This increase is typically a percentage of the rent increase and is commonly set at around 10% of the additional rental amount. For example, if the base rent increases by $100, the security deposit may be raised by $10. The purpose of this clause is to maintain the balance between the landlord's financial security and the tenant's obligations. By adjusting the security deposit to account for changes in rental costs, landlords can protect themselves from potential financial losses resulting from damage or non-payment of rent. It is important to note that the specific details and variations of this Indiana Clause may vary depending on the lease agreement and the landlord's preferences. Some landlords may choose to name this clause differently or modify it to suit their specific needs. However, regardless of any changes, the primary aim remains the same — to ensure that the tenant security deposit reflects any increases in the base rent to protect the landlord's investment. In summary, the Indiana Clause Providing for the Periodic Increase in the Tenant Security to Reflect Increases in Base Rent is a legal provision used by landlords in Indiana to safeguard their financial interests. By periodically adjusting the tenant's security deposit to align with increases in the base rent, landlords can minimize potential risks and ensure the tenant is financially accountable throughout the lease term.
