In which situation can a landlord require a security deposit that exceeds one month’s rent?

The correct scenario in which a landlord can require a security deposit that exceeds one month's rent is for furnished units or leases that are less than one year in duration. This legal provision acknowledges that providing furnished accommodations may entail a heightened risk for landlords, as there is a greater potential for damage to furnishings compared to an unfurnished rental. Additionally, leases that are shorter in duration—typically less than a year—might warrant a higher security deposit as a safeguard for landlords against the increased turnover and associated costs.

In addressing the other options, even if a tenant expresses a desire for a higher security deposit, it doesn't legally obligate the landlord to enforce that. While commercial leases can have different stipulations, they do not universally allow greater security deposits based solely on the nature of the lease. Furthermore, the location of the property, even in a high-value area, does not automatically permit a higher security deposit without the context of the lease type or property condition. Thus, the stipulation for furnished units or shorter leases is the specific situation that justifies an elevated security deposit.