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 Kentucky Clause Providing for the Periodic Increase in the Tenant Security to Reflect Increases in Base Rent is a provision in a lease agreement that allows the landlord to periodically increase the security deposit held by the tenant to reflect any increases in the base rent. This clause is commonly found in residential and commercial lease agreements in Kentucky to ensure that the security deposit remains proportional to the rental amount. This clause serves to protect the landlord's interests by providing additional security in case of unpaid rent or damages caused by the tenant. By periodically adjusting the security deposit to reflect increases in the base rent, the landlord is able to maintain adequate financial coverage throughout the lease term. The frequency and amount of the periodic increase in the security deposit should be clearly specified in the lease agreement. Typically, this increase is aligned with the rent increase schedule, which can be annual or occur at intervals defined in the lease. For example, if the base rent increases by $100 each year, the security deposit should also increase by the same amount to reflect the new rental obligation. It's worth noting that Kentucky law regulates security deposits. According to Kentucky Revised Statutes § 383.580, the maximum amount that a landlord can charge as a security deposit is equal to two months' rent. However, this limit might vary depending on local ordinances and any specific provisions agreed upon in the lease agreement. Different variations of the Kentucky Clause Providing for the Periodic Increase in the Tenant Security to Reflect Increases in Base Rent might include: 1. Gradual increase: The security deposit is increased incrementally over time, with specific amounts or percentages outlined in the lease agreement. For example, the security deposit may increase by 10% of the new base rent every five years. 2. Fixed increase: The security deposit is increased by a fixed amount or percentage at predetermined intervals specified in the lease agreement. This provides simplicity and predictability for both parties involved. 3. Proportional increase: The security deposit is increased proportionally to match the percentage of rent increase. For instance, if the base rent increases by 5%, the security deposit is increased by the same percentage, maintaining the same ratio to the rental amount. It is important for both landlords and tenants to thoroughly review and understand the terms of the Kentucky Clause Providing for the Periodic Increase in the Tenant Security to Reflect Increases in Base Rent before signing the lease agreement. Seek legal advice if necessary to ensure compliance with local laws and regulations.
