Fundamental Rent Agreement Start Dates Explained

Lease Commencement Date: the date on which the rent officially begins and the tenant takes possession of the leased property. This is the first day of the rent agreement.

Rent Commencement Date: the date on which the tenant starts paying rent to the landlord for the use of the rental property.

Occupancy Date or Move-In Date: The date on which the tenant receives a possession of the rental property. It may not be the same as the date the tenancy starts or the date the tenancy begins. This date may be negotiated and may differ from the start date of the tenancy.

Lease Commencement Date VS Rent Commencement Date?

When leasing a commercial property, a lease commencement date refers to the official start of the lease term. While the move-in date, or rent commencement date identifies dates related to the further steps of the rent agreement.

The Lease Commencement Date is the date when possession of the leased property is transferred to the lessee. In other words, it’s the day on which the lease begins and the tenant takes possession of the rented property.

This date is initially negotiated between the tenant and the landlord and it might be the same date as the Rent Commencement Date. However, if the property is not available or vacant at that time; tenants negotiated for early occupancy, or there are amendments agreed upon to work on the property the Lease Commencement Date might not be the same as the Rent Commencement Date.

It’s normal to have different lease and rent commencement dates, and move-in dates within the same lease. 

Usually, if no amendments are required, and the property is available to move in right after the lease agreement is signed, the lease commencement date will be the same as the rent commencement and the move-in day.

Contact us if you need assistance with your commercial rent agreement or looking for a new office to rent.