What is Accrued Rent Liability?

Accrued rent liability is a balance sheet account that stores the amount of rent incurred but not yet paid. This account is used by a tenant that has entered into a facility rental arrangement with a landlord.

Classification of Accrued Rent Liability

The liability is usually included in the accrued liabilities account, along with all other accruals. However, if the accrued rent amount is large enough, management might want to record it in a separate account. The latter situation arises when the rent expense comprises a substantial proportion of the total expenses incurred by the renter.