Use Letter of Credit as Security for Tenant's Construction

When a tenant performs alterations in its space, there’s always the risk that they won’t be performed properly or that one or more mechanic’s liens will be filed against your property. Both of these issues can be costly and have long-lasting ramifications. Traditionally, many owners have tried to avoid those situations by requiring a tenant that plans to do construction to provide bonds before the work starts. But bonds can be a problem for both you and the tenant.