Difference Between Rent Abatement and Free Rent

Commercial property can be difficult to understand, with most requiring a lawyer’s analysis. While some provisions may be clear, others may be complex. This brings the importance of fully understanding before committing to it. Tenants are advised to negotiate and ask for concessions that can save their businesses huge sums of money throughout the lease period. Among the provisions of commercial or even rental leases may be the option of a rent abatement period or free rent. While the two provide for a period of free rent, they have differences. 

What is Rent Abatement?

This is a provision in residential or commercial property leases that allows tenants to pay a portion of the rent or suspend rent payments for a given period. 

Often used as an incentive to attract more tenants, rent abatement can also be used when the landlord is carrying out repairs on the property. 

In the case where a landlord is carrying out repairs, the provision of rent abatement protects tenants from damages caused by fire or flooding. It also protects tenants from natural disasters such as hurricanes, earthquakes, tornadoes as well as forced evacuations by the authorities. 

A rent abatement period can last weeks or months, depending on the provisions of a lease. 

What is Free Rent?

This refers to an offer made to tenants by landlords, institutions and even the government to live in a property rent-free. 

It can be provided for a specific period or as long as the tenant likes. 

In this provision, the tenant does not pay any amount of rent. However, he could be required to pay service fees as well as other utilities such as electricity or water. 

Similarities between Rent abatement and Free rent

• Both give provisions where tenants can live on a property rent-free

Differences between Rent abatement and Free rent

Definition

Rent abatement refers to a provision in residential or commercial property leases that allows tenants to pay a portion of the rent or suspend rent payments for a given period. On the other hand, free rent refers to an offer made to tenants by landlords, institutions and even the government to live in a property rent-free.

Time frame

While rent abatement caters for a given amount of time, free rent can be provided for a given amount of time or as long as the tenant occupies the property. 

Rent abatement vs. Free rent: Comparison Table

Summary of Rent abatement vs. Rent free

Rent abatement refers to a provision in residential or commercial property leases that allows tenants to pay a portion of the rent or suspend rent payments for a given period. On the other hand, free rent refers to an offer made to tenants by landlords, institutions and even the government to live in a property rent-free. Given the many provisions in lease agreements, tenants should read through and seek counsel in areas where they do not understand. 

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