What does the term free rent refer to in a lease?

Free rent refers to a concession provided by a landlord to a tenant, typically allowing the tenant to occupy the premises without paying rent for a specified period. This practice is often used as an incentive to attract tenants, especially in competitive markets, or to accommodate new tenants during their move-in process.

The specified period during which free rent is granted does not mean that the total rent obligation is erased; rather, it establishes a temporary relief that can be particularly advantageous for tenants trying to budget moving and setup costs. Free rent often occurs at the beginning of a lease term, making it a strategic tool for landlords to fill vacancies while benefiting tenants by reducing their financial burden initially.