Occupancy Cost

Occupancy cost refers to the total cost to a tenant who occupies a space, including the total rent that he or she pays. It might also include any required maintenance fees that the person is required to pay, and parking charges, moving expenses and remodeling fees can also be a part of the occupancy cost. Many renters will want to know this total cost so that they can determine how good of a deal they are getting. The monthly rent will tell one part of the story, though extra costs may force a property out of a renter’s budget. Occupancy cost can vary widely depending upon the lease itself. The costs are typically laid out in the lease contract that the two parties will execute at the beginning of their landlord-tenant relationship. Renters aim for lower overall occupancy cost, and landlords typically look for higher costs.