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 Missouri Clause Providing for the Periodic Increase in the Tenant Security to Reflect Increases in Base Rent is a legal provision included in lease agreements in Missouri. It is designed to protect landlords by allowing them to periodically increase the tenant security deposit to match any increases in the base rent during the lease term. Here is a detailed description of this clause and its various types: 1. Purpose and Explanation: The Missouri Clause Providing for the Periodic Increase in the Tenant Security to Reflect Increases in Base Rent serves to safeguard landlords against potential financial losses that may arise due to increased base rent over time. It ensures that the security deposit amount remains proportionate to the rental value of the property, reducing the risk for landlords if tenants default on their payments or cause damage to the premises. 2. Implementation: This clause empowers landlords to adjust the tenant security deposit amount to reflect any raises in the base rent during the lease term. The landlord must provide written notice to the tenant specifying the new deposit amount, the reason for the increase (increased rent), and the effective date of the change. Typically, this notice must be delivered within a specified time frame before the rent increase becomes applicable. 3. Types of Missouri Clause Providing for the Periodic Increase in the Tenant Security to Reflect Increases in Base Rent: a. Fixed Percentage Increase: With this type, the tenant security deposit is raised by a pre-determined percentage equal to the percentage increase in the base rent. For example, if the base rent increases by 5%, the security deposit also increases by 5%. b. Fixed Dollar Increase: Here, the landlord specifies a fixed dollar amount by which the security deposit will be increased, unrelated to the percentage increase in the base rent. For instance, if the rent goes up by $100, the deposit might increase by $50. 4. Legal Considerations: Landlords must follow the guidelines set by Missouri law when implementing the Missouri Clause Providing for the Periodic Increase in the Tenant Security to Reflect Increases in Base Rent. The notice period required for informing tenants about the increase, as well as any limitations or maximum thresholds for security deposit amounts, should be adhered to. It is advisable for both parties to thoroughly read and understand the lease agreement before signing, ensuring compliance with all legal requirements. In conclusion, the Missouri Clause Providing for the Periodic Increase in the Tenant Security to Reflect Increases in Base Rent is an integral component of lease agreements in Missouri. It enables landlords to adjust the tenant security deposit to match increased base rent, thereby minimizing potential financial risks. Landlords must follow Missouri's legal guidelines to implement this clause effectively.
