What Is Occupational Rent?

Occupational rent is the amount the buyer pays the seller for occupying the property before transfer is registered. It applies when the buyer takes occupation before the property is legally transferred into their name.

Key points

• Rate is agreed in the Offer to Purchase
• Typically calculated as a monthly amount
• Usually equivalent to the seller's bond repayment or market rental
• Payable from date of occupation until registration

Occupational rent protects the seller from carrying bond costs while the buyer enjoys the property.