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Fit Out Costs
These are costs which are usually incurred by a lessee prior to being able to occupy any new or alternative accommodation. Fit out items will include a range of goods from the erection of partitioning, installation of electrical or telecommunications cabling, through to purchasing furniture. Fit out costs will vary according to each tenant’s particular requirements and it may be possible to obtain a landlord’s contribution towards the expenditure. The amount spent on fit out costs is usually written off over the duration of a tenancy. In the circumstances it is important to have regard to the length of any new lease prior to incurring the costs.During the period of time when any fit out works are taking place, it would be usual to obtain a rent free period until such time as the property is ready for beneficial occupation.