straight line rent accounting

The revenue from base rent recurring costs is accounted for evenly over the life of the lease. This means that the rent the tenant pays (or the landlord receives) is averaged over the life of the lease, and this average is used for accounting purposes, rather than the amount that is actually paid. The difference between the straight line rent and the actual rent that is paid or received must be recorded in the general ledger. In this way, straight line reporting accounts for stepped rents, leasehold improvements, up-front payments, free rent months, and other payment scenarios.