rent-free period

rent-free period

A sometimes misleading term indicating a landlord concession regarding a period of time during which the tenant will not have to pay any rent. It is truly rent-free if the uncollected rent is not rolled into the back end of the lease or otherwise recaptured over the term of the tenancy. If the tenant must pay the rent, but simply at another time and in smaller increments, then it is more properly called deferred rent. Even landlords often misuse the two words, so persons shopping for space should specifically inquire about the free-rent versus deferred-rent issue when receiving quotes.

References in periodicals archive ?
5% profit which will rise to more than 7% in March following the expiry of a rent-free period at the park.
Sometimes the rent-free period is extended as an incentive to induce the tenant to take the lease at the rent required.
They generally include a rent-free period, a reduced rent period, or cash payments from the landlord to cover specific costs.
As part of the deal, a three-year rent-free period was agreed to give the company time to refurbish the building and trade initially with fewer costs.
It adds up to a total equivalent rent-free period of four years and nine months worth pounds 1m.
How about a rent-free period when you sign up for a one-year lease?
For instance, how long do tenants want to commit for, should they ask for a lease break option and is the landlord willing to offer a rent-free period while tenants adapt the premises to their needs?
BlackRock has a rent-free period of 36 months and rent will be reviewed every five years, Songbird added.
They have taken the premises on a 16-year lease with a stepped rent in lieu of a rent-free period, culminating in rent in years three to five of pounds 16 per sq.
A rent holiday is either a rent-reduction or a rent-free period.
A "rent holiday" is a rent reduction or rent-free period.
During the one-year rent-free period, each family will be required to deposit at least $200 a month into a First Union savings account from which no withdrawals can be made, except for emergencies.