Security Deposit
A 2 to 3 years lease term requires tenant to put down a security deposit equivalent to 2 or 3 months' gross rent payable upon signing the letter of offer. Conversely, to the advantage of tenant, some Landlord may practice paying the security deposit in 2 stages
• Initial 1 month's gross rent deposit payable upon signing the letter of offer or intent to lease.
• The balance 1 or 2 months' gross rent deposit payable upon signing the tenancy agreement or the occupation of premises or commencement of lease, whichever is earlier.
The deposit is refundable without interest when the tenancy expires but it is subjected to tenant's due performance of the terms and condition in the tenancy agreement. The landlord reserves the right to deduct all costs and expenses properly payable by the tenant on account of any breach by the tenant.
Legal Fees & Stamp Duty
Normally tenant is responsible for both parties reasonable legal costs incurred in connection with the preparation of the lease documents. The scale varies from landlord to landlord but this is not a major expense item.
Tenant is also responsible to pay stamp duty on tenancy documents. The cost is approximately 10% of the monthly gross rent.
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