Article source: Legal Counsel PA, FL
A landlord weighing a five-year commercial lease is really extending credit, since the space and the build-out both ride on the tenant paying. That is why the paperwork request arrives before the lease does, and why it feels more like a loan application than a rental.
This guide covers:
- The financial records landlords ask for first
- How personal guaranties and deposits fill the gaps
- What changed with Florida’s sales tax on commercial rent
- How to prepare the package before negotiations start
The Financial Records Landlords Ask For First
The core of the package is proof that the business can carry the rent through slow months. Landlords commonly ask for recent profit and loss statements, a balance sheet, business tax returns and bank statements, along with permission to run credit on the business and its principals. A company with a short history should expect the request to stretch to a business plan with revenue projections, since the landlord has little else to judge.
Landlords also check that the entity signing the lease actually exists in good standing. In Florida that usually means confirming active status with the Division of Corporations, which issues a Certificate of Status on request.
Personal Guaranties, Deposits and Letters of Credit
When the financials leave doubt, landlords look for someone or something else to stand behind the lease. The most common answer is a personal guaranty from an owner, and under section 725.01 of the Florida Statutes a promise to answer for another’s debt must be in writing and signed by the person bound. Owners should read it as closely as the lease, because its length and any cap on liability can often be negotiated.
Security deposits follow the same logic. Florida’s deposit-handling rules in section 83.49 sit in the residential part of Chapter 83, while commercial leases fall under Part I, which covers nonresidential tenancies. That leaves the amount and return conditions to the lease, and some landlords accept a letter of credit instead of cash. Tenants who want those terms reviewed often work with a Florida firm that advises small businesses and property owners before the deposit changes hands.
The Rent Tax Change and Preparing Your Package
Budgets built before late 2025 may still include a cost that no longer applies. According to a Holland & Knight summary of HB 7031, Florida repealed the state sales tax on commercial rent for rent charged on or after October 1, 2025, along with the county discretionary surtax on that rent. Older lease forms may still mention the tax, so check how the draft handles it.
A complete package also signals that the tenant takes the commitment seriously. Many owners line up counsel to review the lease and guaranty at the same time, and a step by step guide from Legal Counsel, P.A. on choosing between Orlando business attorneys walks through what to weigh when picking one.
| Item | Why the landlord wants it |
| Financial statements and tax returns | To test whether revenue covers rent |
| Bank statements | To confirm cash on hand matches the statements |
| Personal guaranty | To reach an owner’s assets if the business defaults |
| Deposit or letter of credit | To cover unpaid rent or damage |
| Certificate of Status | To confirm the tenant entity is active |
Final Thoughts
A landlord’s financial checklist is a risk assessment written as a document request. Tenants who understand what each item protects can supply it quickly and see where the real negotiation sits.
Key Takeaways
- Assemble financial statements, tax returns and bank statements into one package before touring spaces.
- Treat a personal guaranty as its own contract, and negotiate its length and cap.
- Check how any draft lease handles sales tax on rent charged after October 1, 2025.
The paperwork can feel intrusive, but it previews the relationship. A landlord who asks careful questions up front usually expects careful answers later.
Frequently Asked Questions
Does a commercial landlord in Florida have to return the security deposit?
The answer turns on the lease. Section 83.49 governs residential deposits, while commercial tenancies fall under the nonresidential part of Chapter 83, so the lease language on return conditions and timing does most of the work. Tenants should read that clause before paying.
Can a personal guaranty on a commercial lease be limited?
Yes, if the landlord agrees. Guaranties can be capped at a dollar amount or a number of months of rent, or set to end after a period of on-time payment. Any limit has to appear in the signed written guaranty to be relied on.
Is there still sales tax on commercial rent in Florida?
The state sales tax on commercial rent, and the county surtax on it, were repealed for rent charged on or after October 1, 2025. Rent charged through September 30, 2025 remained taxable, so year-end reconciliations for 2025 may still involve the tax.
What does a landlord look for in a commercial tenant?
Landlords generally look for steady revenue, manageable debt, a use that fits the property and an owner willing to stand behind the lease. Financial records, credit checks and the personal guaranty are the tools they use to test each of those points.
