Beneficial occupation, or beneficial occupancy, or BO, is that window of time between a) when a tenant can first occupy the premises, and b) final completion.
The BO window is generally used by the tenant to fit out and ready their premises.
In other instances, the BO period may be used as a tenant move-in incentive – i.e. as a “rental holiday”. This financial saving may be offered as an additional tenant incentive on top of tenant installation allowances.
Landlords, subject to negotiation, can provide this period of occupation to tenants either:
- Free of rent and related expenses, or
- Rent-free only. Here the tenant may be responsible, in full or part, for related expenses (such as operating costs, or expenses included in gross rental).
Beneficial occupation date is the same as lease occupation date.
For a more detailed definition of this term, relating more closely to the construction industry, please see the link here.[/vc_column_text][/vc_column][/vc_row]
