Rentable Area
Updated on July 18, 2023
The term “rentable area” refers to the total amount of space within a property that is used to calculate the rent payable by a tenant. It represents the area that the tenant is responsible for and occupies for their use, regardless of whether other areas within the property are shared or common spaces. The rentable area typically includes the actual usable space that the tenant occupies exclusively for their business operations. This includes individual offices, workstations, meeting rooms, storage areas, and any other areas that are specifically allocated to the tenant for their use. It is the area that directly contributes to the tenant’s ability to conduct their business activities within the premises.
Understanding Rentable Area in detail
Rentable area in real estate refers to the total space within a property used to calculate rent, excluding shared areas like corridors, lobbies, restrooms, and utility rooms. Tenants are only charged for the specific space they occupy, ensuring fairness and accurate rental assessments. Standardized measurement practices are used to determine the rentable area, providing consistency and allowing for fair comparisons. Understanding rentable areas is important for tenants to know their responsibilities and costs, and for landlords to determine rental income fairly based on usable space.
