A property owner may consider a variety of legal and business protections when negotiating a lease with a tenant that is only marginally creditworthy. While used less frequently than security deposits and personal guarantees, granting the landlord a security interest in its personal property can enhance a tenant's credit.
The Landlord's Lien under the Uniform Commercial Code
While used less frequently than security deposits and personal guarantees, granting the landlord a security interest in its personal property can enhance a tenant's credit. This device may be more effective when conferred by certain types of tenants than by others, but nevertheless, it may provide the landlord with a potent default remedy, particularly in a fragile market.
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