What is often required by a lessor before a lease can commence?

The requirement of a performance bond by a lessor before a lease can commence is often linked to situations where the lessor wants assurance that the lessee will comply with the terms of the lease. A performance bond serves as a financial guarantee, protecting the lessor from potential losses resulting from the lessee's default on their contractual obligations. It can reassure the lessor that they will be compensated for any damages or defaults that could occur during the lease term.

In practice, while advance rent payment, credit score checks, and employment verification may also play roles in the leasing process, they do not universally serve as prerequisites for a lease to commence in the way that a performance bond can. Advance rent may be a common practice, but it's not mandatory in all cases. Similarly, checking a credit score or verifying employment may be important for assessing the lessee's ability to pay but does not hold the same definitive assurance of compliance with all lease terms as a performance bond does.