What is the difference between occupational rent and beneficial occupation?
Category Q & A's
Occupational Rent
In certain cases, a purchaser acquiring a new property needs immediate use of the premises. The purchaser will then pay the existing owner occupational rent in the same way a usual tenant will pay the landlord rent. The purchaser can then start moving in whilst the property is transferring ownership in the Deeds Office.
Beneficial Occupation
Beneficial occupation is in essence a rent-free period. This could be from 1 month to 3 months but is always up for a negotiation. Beneficial occupation is particularly common in the office sector. Post pandemic landlords are competing to fill their vacancies and thus give their tenants benefits such as beneficial occupation to secure the deal.
Author: Loy de Jager