Recently, my neighbour asked me what is passing rent. I informed her that passing rent refers to the actual rent that a tenant is currently paying for a property. It's the established, ongoing rental amount agreed upon in the existing lease or tenancy agreement. It's a crucial term in property transactions and valuations.
Factors Influencing Passing Rent
Here are several aspects that influence passing rent:
Market conditions: Prevailing rental rates for comparable properties in the same area significantly impact passing rent. A rising market typically leads to higher passing rents over time.
Lease terms: The duration of the lease, rent escalation clauses (periodic rent increases), and renewal options directly affect the rent.
Property characteristics: The size, location, condition, amenities, and age of the property influence its rental value and, consequently, the passing rent.
Tenant profile: The creditworthiness and reputation of the tenant can also play a role, particularly in commercial leases.
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What is Passing Rent?
Bhagvant116
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20 days
2025-05-29T16:18:44+00:00 2025-05-29T16:18:46+00:00Comment
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