The tenant's obligation to hand back the premises at lease end in the condition required by the lease, with vacant possession.
Related terms
- Anchor tenant
A large, prominent tenant that draws footfall or credibility to a scheme.
- Break clause
A right allowing landlord or tenant to end a lease early on defined terms.
- Common area maintenance (CAM)
Charges recovered from tenants for maintaining shared areas of a building or scheme, such as lobbies, lifts, parking, and landscaping; the retail and commercia…
- Contracting out
Agreeing to exclude statutory security of tenure so the tenant has no automatic right to renew at lease end; the tenant gives up renewal protection at the outs…
- Covenant strength
The financial reliability of a tenant, a key determinant of the value of leased income.
- Dilapidations
Disrepair or breaches of a tenant's repairing and reinstatement obligations, and the landlord's claim for the cost of making them good at or during lease end.
- Effective rent
The rent after adjusting for incentives, giving the true economic value of a lease.
- Escalation
A pre-agreed periodic increase in rent, e.g.