What is rent abatement?

Rent abatement refers to a situation where a landlord agrees to reduce or eliminate the rent payment for a specified period. This often occurs in commercial leases, providing financial relief to tenants who may be facing challenges, such as construction delays or economic difficulties. During the abatement period, the tenant is either not required to pay rent at all or can pay a reduced amount, allowing them to stabilize their business operations without the immediate pressure of rent payments.

This concept is particularly relevant in negotiations when a tenant may need some form of concession to sustain their business or during situations where the premises are not available or usable due to circumstances beyond their control, such as major repairs or renovations. Rent abatement creates a more flexible financial situation that can help preserve the landlord-tenant relationship in the long term.