Enter Date Lease मुफ़्त में

Hi, I'm Michael Goldin. Today at Lease-Review, we're going to go over the differences and considerations that need to be given to the lease commencement date, the tenant access or occupancy date, and the rent commencement date. The plain definition of the lease commencement is the point in time in which the relationship between the tenant and the landlord actually begins. In its simplest form, the lease commencement occurs simultaneously with the tenant access or occupancy and the beginning of the payment of rents. However, these three dates can occur at three separate points in time. The first to occur would be the tenant access or occupancy date. The landlord often allows the tenant early access to the space so that they can ready the space for their specific use. Sometimes, this is to perform a build-out and perform all the construction that goes along with that, it can include moving in furniture, or it can include IT. Okay, so the big question is who's responsible for expenses during this early access period. The various expenses can include things like the tenant's share of property taxes and insurance, CAM charges, and utilities. Typically, the tenant would be responsible for these items during the early access period because they are occupying the space, and they're in the best position to control some of these expenses, especially utilities. However, this is certainly negotiable and should be addressed during the lease negotiation process. The other main consideration is does the rest of the lease apply during this early access period, including default provisions and insurance requirements. We think absent language to the contrary, the answer is yes. However, a very short and simple clause can be inserted into the early access section that states something as simple as, "Other than the payment of rent, the rest of the provisions of this lease shall apply during this time frame." After the tenant access or occupancy period, the actual lease would typically commence. But that doesn't always coincide with the payment of rent. Sometimes, the rent commencement is at a later date in time than the actual lease commencement. This can occur in a couple of situations. The first is for drafting convenience, in which case instead of having an early access period, a lease commencement, and rent commencement, you'll just have a lease commencement that coincides with the tenant access and occupancy date, and then there's a certain period of time that rent is waived or is listed as free rent so that the tenant can move in or perform any build-out. The second situation is as an incentive where the landlord offers a period of free rent to induce the tenant to actually sign the lease. In either case, the rent doesn't commence until a later period in time of the actual lease commencement. The various concepts discussed today around lease commencement, tenant access and occupancy, and rent commencement are fairly simple and easy to understand. However,...