What does "base rent" refer to in a lease agreement?

Base rent in a lease agreement is defined as the minimum amount of rent a tenant is required to pay for the leased property, excluding any additional costs. This figure represents the fundamental rental obligation of the tenant before factoring in other expenses that may be incurred, such as utilities, maintenance fees, or property taxes that may be recouped by the landlord.

Understanding this concept is crucial because it establishes the foundational financial responsibility of the tenant in the lease, differentiating it from the total rent that may include variable costs throughout the lease term. The base rent functions as a baseline that can be critical for budgeting and financial planning both for tenants and landlords.