The current rental that a lessee/ tenant pays to the landlord as specified by the terms of the lease. It constitutes the annual rental income currently (at a given point in time) receivable on a property held by a lessee as at the balance sheet date (and hence it may not be equal to the estimated current market rental value or ERV). The passing rent does not take into account any rental income associated with a rent-free period currently active. It also excludes service charge income (which is netted off against service charge expenses).
It is also known as a current gross rent.
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