A personal permission to use space that grants no exclusive possession or leasehold estate; more flexible and easier to terminate than a lease, common for short-term and serviced arrangements.
Related terms
- Make-good
The tenant's obligation to strip out fit-out and restore the premises to an agreed condition at lease end; the Gulf and Asia-Pacific term for reinstatement.
- Net lease
A lease in which the tenant pays some or all operating costs on top of base rent.
- Occupancy rate
The share of available space that is currently let or used.
- Over-rented
Where the passing rent exceeds current market rent, so the excess income is at risk of falling at the next review or lease renewal.
- Passing rent
The rent actually being paid under a lease at a given date, as distinct from market rent or estimated rental value.
- Privity of contract
The doctrine that only the original parties to a lease are bound by its terms, meaning an original tenant can remain liable even after assigning the lease.
- Reinstatement
A tenant's obligation to return leased premises to their original condition at lease end, removing fit-out and making good any alterations; the cost is often a…
- Rent abatement
A temporary reduction or suspension of rent, granted as an incentive or where the premises become unusable, for example after damage.