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 significant end-of-lease liability.
Related terms
- Rent abatement
A temporary reduction or suspension of rent, granted as an incentive or where the premises become unusable, for example after damage.
- Rent concession
Any reduction from headline rent, such as a rent-free period or reduced rent, given to attract or retain a tenant; the gap between headline and effective rent.
- Rent-free period
A period at the start of a lease during which no rent is charged, used as an incentive.
- Rent review
A contractual reset of rent during a lease, often to market or by indexation.
- Schedule of condition
A dated photographic and written record of the premises' state at lease commencement, used to limit the tenant's repairing liability to no worse than that base…
- Security deposit
A sum held by the landlord as security against rent arrears or damage, refundable at lease end net of deductions; in the UAE typically five to ten percent of a…
- Service charge
A charge to tenants for the cost of running and maintaining common areas and services.
- Stepped rent
A lease with pre-agreed fixed rent increases at set dates, giving both parties certainty over the income profile.