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 ?
He said: "We are offering a three-month rent-free period from August and then a 50% reduction after that.
Instead of lowering rents, Rayner said, the owners are offering incentives such as rent-free period and rents inclusive of utility bills to attract new tenants.
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.
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.
Thus, there will be a rent-free period from the first to fourth year of the lease period.
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.
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?
In addition to a six-month rent-free period the prize also includes business rates, heat, light and power, maintenance, care taking, security and cleaning.
BlackRock has a rent-free period of 36 months and rent will be reviewed every five years, Songbird added.