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.
A Washington Clause Providing for the Periodic Increase in the Tenant Security to Reflect Increases in Base Rent is a legal provision found in a rental agreement or lease contract in the state of Washington. This clause outlines the mechanism through which the security deposit of a tenant can be periodically increased to correspond with any increases in the base rent amount. The purpose of this clause is to protect the landlord's interests by ensuring that the security deposit remains proportionate to the rental value of the property over time. It helps address any potential gaps in coverage that may arise due to rent increases, allowing the landlord to adequately cover any potential damages, unpaid rent, or other liabilities that may occur during the tenancy. When this clause is present in a tenancy agreement, it allows the landlord, upon providing proper notice, to raise the security deposit amount to reflect the increase in the base rent. The specific details, such as the frequency and percentage of the increase, may vary depending on the agreement and the understanding between the landlord and tenant. Different types or variations of the Washington Clause Providing for the Periodic Increase in the Tenant Security to Reflect Increases in Base Rent may include: 1. Fixed Percentage Increase: This type of clause stipulates a predetermined fixed percentage by which the security deposit will be increased each time the base rent is raised. For example, if the agreed percentage is 5%, and the base rent of $1,000 is increased to $1,100, the security deposit of $1,500 would increase by $75 to a total of $1,575. 2. Fixed Amount Increase: In this variation, the clause sets a fixed amount by which the security deposit will be increased regardless of the percentage increase in base rent. For instance, if the agreed amount is $100, and the base rent increases from $1,000 to $1,200, the security deposit would increase by $100, resulting in a total deposit of $1,600. 3. Proportional Increase: This type of clause bases the security deposit increase on a proportional calculation relative to the percentage increase in the base rent. For example, if the agreed proportion is 50% and the base rent increases by 10%, the security deposit will be raised by 5% of its original value. 4. Staircase Increase: This clause typically includes specific time intervals during the tenancy when the security deposit will be increased. For example, every two years, the deposit may increase by a fixed amount or percentage, regardless of the base rent increase. It is important for both landlords and tenants to carefully review and understand any Washington Clause Providing for the Periodic Increase in the Tenant Security to Reflect Increases in Base Rent before signing a rental agreement or lease contract. This will help ensure transparency, avoid potential misunderstandings, and protect the rights and interests of both parties throughout the tenancy.
