Rent payment dates and charges.
Commercial property rent is usually payable quarterly in advance, the most common dates are:
Other terms you should be aware of include:
Base Rent – this is the minimum amount of rent payable. The amount of rent payable will be set out in the lease and will exclude percentage rents or any other additional operating costs.
Percentage lease – you would normally see this term in a lease for a retail area or a lease of a premises within a shopping centre. Within these agreements the tenant will pay a fixed base rent along with a percentage of their gross income. Usually, such a percentage will be agreed upon in advance by the landlord.
FRI Leases – FRI stands for Full Repairing and Insuring Lease. This means that all costs of maintenance, repair and insurance on the property must be paid by the tenant.
Gross Rent Lease – this is a form of commercial lease where the Tenant is responsible for paying the base rent and specified expenses. While the Landlord is responsible for paying all expenses involving the operation and maintenance of the property such as the insurance and utilities. In some gross rent leases, the Landlord will also pay the property tax.