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 ?
After this period, Paperchase could either close the shops or seek a rent-free period, with a small number expected to close.
'With effect from Tuesday, December 18, 2018, there will be an increase in rent-free period for cargoes housed in the terminals from the current period of three free days before commencement of rent charges to 21 free days before commencement of rent charges for a period of four months.
'I hope developers will consider a longer rent-free period and maybe free up the cost, but the problem is some of the developers are listed companies.
He said: "We are offering a three-month rent-free period from August and then a 50% reduction after that.
Ediston Property Investment Company expect to make an initial 6.5% profit which will rise to more than 7% in March following the expiry of a rent-free period at the park.
Filinvest Land had also sought to extend the rent-free period to 18 months, but the SSS kept the six-month rent-free fit-out period, citing its leasing guidelines approved by the Social Security Commission.
Rent-free periods | Is there to be a rent-free period?
They generally include a rent-free period, a reduced rent period, or cash payments from the landlord to cover specific costs.
Thus, there will be a rent-free period from the first to fourth year of the lease period.
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?
It is understood it has also negotiated an initial rent-free period of around two years.