Firstly, the current rent deposit will have to be repaid on expiry of the current lease.
This time round, you are now a “known entity” to the landlord and you have told us that you have paid the rent on time and been a “good” tenant (presumably having materially complied with the obligations placed upon you by the lease). This should work in your favour and suggest that the Landlord doesn’t need a rent deposit deed.
That said, the Landlord obviously controls the building and the lettings of it. It might be that the Landlord is trying to ‘future proof’ their portfolio in case things change in the future.
Are you willing to provide the company’s accounts to your landlord? Obviously if these are strong (and getting stronger), then the argument against a rent deposit being justified or required is further improved. It might be worth doing this to see if you can persuade your landlord otherwise. However, unfortunately for you, the new lease is within the gift of your landlord and as a rent deposit deed is a commercial term, you may be unable to persuade them to drop this point.
This document is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from taking any action as a result of the contents of this document.Get in touch with Isabel Alderton-Sell