Early occupancy: Overview, definition, and example
What is early occupancy?
Early occupancy refers to the situation in which a tenant or lessee is allowed to take possession of a rental property before the official start date of their lease or rental agreement. This can happen in various scenarios, such as when the tenant needs to move in earlier than planned due to personal circumstances or when the landlord is willing to allow occupancy before the full terms of the agreement are triggered. Early occupancy is typically agreed upon in writing and may come with specific terms and conditions, such as additional rent, a temporary agreement, or other stipulations.
For example, a tenant may be permitted to move into an apartment a few days before the lease officially begins if the property is ready and the landlord agrees.
Why is early occupancy important?
Early occupancy is important because it allows tenants flexibility in moving into a property, which can be beneficial in cases where the tenant needs to relocate quickly or align their move-in date with other life events. For landlords, it can also be advantageous, as it may help reduce vacancy periods and start receiving rental income sooner. However, it is essential for both parties to clearly outline the terms of early occupancy to avoid misunderstandings regarding rent, responsibilities, and the overall lease terms.
For businesses, offering early occupancy can help attract tenants in a competitive market, while for tenants, it can provide convenience and ease the transition to a new property.
Understanding early occupancy through an example
Let’s say a company has leased office space with a move-in date scheduled for the 1st of the month, but they need to start operations earlier on the 25th of the previous month. The landlord agrees to allow early occupancy, and they both agree on a pro-rated rent for the extra days the company will occupy the space before the official lease begins.
In another example, a family is renting a house and has a lease agreement that starts on the 15th of the month. However, they need to move in earlier on the 5th due to personal reasons. The landlord agrees to early occupancy with the understanding that the tenant will pay a higher rent for the first 10 days of occupancy.
An example of an early occupancy clause
Here’s how a clause like this might appear in a lease agreement:
“The Tenant is granted early occupancy of the leased premises beginning on [date], prior to the official lease start date of [date]. Early occupancy is provided under the following conditions: [list conditions, such as pro-rated rent, responsibilities for utilities, or maintenance]. All other terms of the lease shall apply starting from the official lease start date.”
Conclusion
Early occupancy allows tenants to move into a rental property before the official lease or rental period begins, providing flexibility for both parties. Clear terms and conditions regarding the timing, rent, and responsibilities during early occupancy are essential to avoid misunderstandings and ensure both the tenant and landlord are protected. This arrangement can be beneficial in various situations, such as when tenants need to move in early for personal reasons, or when landlords want to reduce vacancy periods and start receiving rental payments sooner.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.