Beneficial occupation, or beneficial occupancy, is that stage of development, generally before final completion, that a tenant can occupy the premises.
Landlords, subject to negotiation, may provide this period of occupation to tenants either:
- Rent and related expenses free, 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 is generally used by the tenant to fit out and ready their premises.
In other instances this may be used as a tenant move in incentive – i.e. as a rental holiday.
Beneficial occupation data is the same as lease occupation date.
For a more detailed definition of this term, relating relating more closely to the construction industry, please see the link here.