What is Rent Commencement Date?

Definition

The rent commencement date is the date on which a tenant's obligation to pay rent and operating expense charges (including CAM) begins. It may differ from the lease commencement date or the possession date, particularly when the landlord provides a free rent period or when tenant build-out takes longer than expected. For CAM reconciliation purposes, the rent commencement date determines when the tenant enters the CAM pool and begins accruing pro-rata share obligations. Mid-year rent commencement requires prorating the tenant's annual CAM estimate and can complicate the year-end reconciliation calculation. Billing systems must correctly handle partial-year tenants to avoid over- or under-billing in the first occupancy year.