Base Rent Date
What Is a Base Rent Date?
The base rent date is the date a rental property’s base rent must be paid to the landlord. In most lease agreements, the base rent date is the first business day of the calendar month. The base rent date must be specified in the lease agreement.
Base rent —also called fixed rent— is the set rental amount a commercial tenant pays the landlord each month before any revenue percentages or additional operating expenses.
Most landlords will charge a tenant a late fee if the base rent is not paid by the due date, before they decide to send a late rent notice or not. If rent is due on the first of the month and that is a business day, then many landlords will activate the late fee on the second day of the month. However, some state and local jurisdictions mandate a grace period of between three and five days for late fee charges.
How Is Base Rent Determined?
Typically, base rent is priced on a square-foot basis. However, the square footage of a commercial space is not calculated in the same way as a residential space. Instead of multiplying the length times the width of the rented unit, you must calculate the “rentable square feet” plus the “usable square feet.” This larger number includes a share of the building’s common areas as well as the tenant’s exclusive square footage.
The common area of a commercial building often includes the mailroom, maintenance closets, lobbies, and bathrooms that are not inside an individual tenant’s space. Some landlords also include a building’s on-site management office in the common area.
Many landlords seek to have a fixed escalation price incorporated into the lease. For example, they may request annual rent increases of five percent or more. However, base rent increases may not be fair to tenants whose incomes are tied to fluctuations in the U.S. economy.
What Is the Housing Stability and Tenant Protection Act?
The Housing Stability and Tenant Protection Act (HSTPA) of 2019 is a New York state statute that brought changes to landlord-tenant law to try and counteract the instabilities mentioned in the previous section.
The HSTPA altered existing rent stabilization and rent control laws. For example, the HSTPA ended the so-called “luxury” deregulation of rent-controlled and rent-stabilized units based on vacancy or high income. It also ended the statutory vacancy rent increase and longevity bonus for new rent-stabilized leases.
Under the HSTPA, rent increases for individual apartment improvements and major capital improvements (MCIs) are considered temporary rather than permanent.
The Act amended other laws governing the steps for rent increases and delivering rent increase notices and many aspects of eviction proceedings.
Helpful Resources:
New York Law Journal - When the Apartment Is Vacant On the Base Date
NY State Bar Association - NY’s Housing Stability And Tenant Protection Act of 2019
WNY Lawyers - NY Housing Stability & Tenant Protection Act of 2019
What Is a Base Rent Date?
The base rent date is the date a rental property’s base rent must be paid to the landlord. In most lease agreements, the base rent date is the first business day of the calendar month. The base rent date must be specified in the lease agreement.
Base rent —also called fixed rent— is the set rental amount a commercial tenant pays the landlord each month before any revenue percentages or additional operating expenses.
Most landlords will charge a tenant a late fee if the base rent is not paid by the due date, before they decide to send a late rent notice or not. If rent is due on the first of the month and that is a business day, then many landlords will activate the late fee on the second day of the month. However, some state and local jurisdictions mandate a grace period of between three and five days for late fee charges.
How Is Base Rent Determined?
Typically, base rent is priced on a square-foot basis. However, the square footage of a commercial space is not calculated in the same way as a residential space. Instead of multiplying the length times the width of the rented unit, you must calculate the “rentable square feet” plus the “usable square feet.” This larger number includes a share of the building’s common areas as well as the tenant’s exclusive square footage.
The common area of a commercial building often includes the mailroom, maintenance closets, lobbies, and bathrooms that are not inside an individual tenant’s space. Some landlords also include a building’s on-site management office in the common area.
Many landlords seek to have a fixed escalation price incorporated into the lease. For example, they may request annual rent increases of five percent or more. However, base rent increases may not be fair to tenants whose incomes are tied to fluctuations in the U.S. economy.
What Is the Housing Stability and Tenant Protection Act?
The Housing Stability and Tenant Protection Act (HSTPA) of 2019 is a New York state statute that brought changes to landlord-tenant law to try and counteract the instabilities mentioned in the previous section.
The HSTPA altered existing rent stabilization and rent control laws. For example, the HSTPA ended the so-called “luxury” deregulation of rent-controlled and rent-stabilized units based on vacancy or high income. It also ended the statutory vacancy rent increase and longevity bonus for new rent-stabilized leases.
Under the HSTPA, rent increases for individual apartment improvements and major capital improvements (MCIs) are considered temporary rather than permanent.
The Act amended other laws governing the steps for rent increases and delivering rent increase notices and many aspects of eviction proceedings.
Helpful Resources:
New York Law Journal - When the Apartment Is Vacant On the Base Date
NY State Bar Association - NY’s Housing Stability And Tenant Protection Act of 2019
WNY Lawyers - NY Housing Stability & Tenant Protection Act of 2019