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Lease Commencement Date: This is the date that the lease term begins. For example, if the lease term is five years, then day one of the five-year term is the lease commencement date. Rent Commencement Date: This is the date upon which monthly rent begins for the space.

To determine the lease term, a company first determines the length of the non- cancellable period of a lease and the period for which the contract is enforceable. It can then determine ? between those two limits ? the length of the lease term.

Most commercial lease terms are going to be 3-5 years long starting on the first of the month and expiring 3-5 years later at the end of the month-prior to the lease start date. For example: In a 3 year lease that commenced on 2/1/2020 the lease would end on 1/31/2023.

There is no substantial difference between a commencement date and an effective date, as they both describe the date on which contract activities commence, or come into effect. It's more common to see 'effective date' used within the context of business contracts, though.

Commencement Date. The date upon which the landlord and the tenant's rights and obligations under the lease begin. The Commencement Date can be synonymous with Lease Effective Date or the Lease Start Date but is not interchangeable as a rule.

The rent commencement date establishes two of the tenant's most important obligations: the duty to pay rent and, if tenant has covenanted to open and operate, the duty to open for business.

Typically, a tenant's move-in date coincides with the commencement date. Some landlords may accommodate an earlier move-in date for special circumstances, and other landlords wish to adhere strictly to the lease. The commencement date is initially negotiated between the tenant and the landlord.