A leasing agreement has a lot of clauses. While making lease agreements, certain clauses should be given careful consideration because of how they may affect the leasing relationship. The security deposit, fit-out period and the right to renew or extend the lease are a few of these terms. So let’s see what is fit out period.
Draft your rent agreement via NoBroker for hassle-free processing.What is the fit out period meaning?
Both parties agree to a rent-free time known as the fit-out period. In consideration of this, the lessee is not responsible for paying the rent during this time. The length of the fit-out period is utilised to allow the lessee to install and fit all the equipment necessary for them to utilise the commercial property for the specified purpose.
The length of this time might range from 3 months to 11 months, based on the scope and difficulty of the installation that must be done inside the building. If necessary, this time frame may also be extended. After all, it is generally advisable to specify the maximum length of the fit-out time after the parties have reached an understanding. This is the fit out period clause you must be aware of.
Do furnished spaces have a rent-free fit-out period?
In the case of furnished workplaces, there is no fit-out period. Making it to the client's specifications is the owner's responsibility. A business seeking an office that is already furnished does not want to invest time in remodelling. People want to simply walk in with their computers and begin working right away. Therefore, it is the owner's duty to ensure that the home is ready for occupancy. The tenant's responsibility to pay rent starts on the specified date right away.
How much time is allotted for the rent-free set-up?
The length of the fit-out period is determined by the property's size and any agreements reached between the landlord and the renter. Generally speaking, smaller properties of 300 to 500 square feet or less should be held for between 7 and 15 days. It varies between 15 and 30 days for larger homes, such as those with more than 1000 square feet. It can rise as high as 45 days in even larger properties of 5000 square feet and more.
What is fit out period must be clear to you now.
Read More: What is the lock-in period? What is the difference between fit out possession and offer of possession? What is the difference between fit out and OC?Your Feedback Matters! How was this Answer?
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What is fit out period?
Purva
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1 Year
2023-03-20T19:37:51+00:00 2023-03-29T18:09:50+00:00Comment
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