Legal Definitions - forehand rent

Forehand rent refers to a payment made by a tenant at the beginning of a lease agreement that covers a period of rent *before* that period officially commences, or as an upfront premium for the lease itself.

Here are some examples to illustrate this concept:

• Example 1: Residential Lease Upfront Payment

  Imagine Sarah is renting a new apartment. Her lease agreement states that the rent is $1,500 per month, due on the first day of each month. However, before she can move in on October 1st, the landlord requires her to pay the first month's rent for October *and* a security deposit in September when she signs the lease. The $1,500 she pays in September specifically for her October occupancy is considered forehand rent because it's paid before the rental period it covers actually begins.

• Example 2: Commercial Lease Initial Premium

  A small business, "The Daily Grind Cafe," is signing a five-year commercial lease for a new storefront. To secure the prime location, the landlord requires an initial payment of $10,000 upon signing the lease, which is explicitly designated to cover the first two months of rent. Even though the lease officially starts on January 1st, and the first two months are January and February, the $10,000 paid in December when the lease was signed is an example of forehand rent because it's an advance payment for future rent periods.

• Example 3: Long-Term Equipment Rental

  A construction company leases a specialized piece of heavy machinery for a six-month project. The rental agreement stipulates a total cost of $60,000, payable in full at the time the equipment is delivered and the contract is signed, even though the usage period will span the next half-year. This upfront lump sum payment, covering the entire rental duration before the full period of use has occurred, functions as forehand rent for the equipment.