Also known as: rents reserved · reserved rent
Written by attorneys · grounded in primary & secondary sources — see below
The amount of periodic payment specified in a lease that a tenant owes the landlord for use of the premises. Payment is due on the date stated in the lease unless the tenant is legally excused from performance.
Rosalind Reed leased an industrial warehouse to Ryan Roberts for manufacturing operations with monthly rent due on the first. After an electrical fire damaged equipment, Ryan retained the keys, stored inventory on site, and continued using the space but stopped paying the monthly amount specified in the lease. Because Ryan was not legally excused from performance, his failure to pay the amount due on the stated date constituted a breach.
Rebecca Ross leased office space to Rowan Russell at a fixed monthly amount due on the first. Rowan stopped paying after minor service issues but kept using the premises. After Rebecca made a written demand for the overdue amount and Rowan failed to pay promptly, Rebecca recovered the sum due and terminated the lease.
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A tenant breaches by failing to pay the amount specified in the lease on or before the due date unless legally excused. Continued possession and use of the premises without surrender or agreement to abate rent precludes excuse based on hardship or partial impairment of use.
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The landlord may recover the amount due. After proper demand and failure to pay promptly, the landlord may also terminate the lease unless equitable considerations justify an extension of time.
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No. Hardship or impairment of intended use does not excuse the obligation when the tenant remains in possession and continues any beneficial use of the premises. Only a recognized legal excuse such as constructive eviction or contractual abatement suspends the duty.
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…that a portion of the taxes and insurance premiums, and all of the interior repairs, be borne by the tenant. The starting rent reserved in the option was $1,000 per month. J. N. A.’s principals attended this critical meeting without counsel, although the Chelsea principals, who now claim ignorance of the conditions to…