rent reviews

A rent review is a provision within a lease whereby the amount of rent is to be reviewed at a stated interval (usually three or five years).

The rent is generally reviewed to an open market value and whether the rent can go downwards or upwards depends on the wording of the signed lease.

How the rent is assessed upon review is also set out in the rent review provisions within the lease. All leases differ between properties and landlords and the solicitors who draft the lease and therefore it is the experience of the surveyor and the solicitor (if required) to interpret the lease that can make all the difference. There is a considerable amount of case law involved with the interpretation of rent review clauses and this should be the starting point for any negotiations.

The second area of expertise required for a rent review is ascertaining the rental evidence available on comparable space and thereafter using negotiating skills to agree the correct level of rent for the accommodation at the time of the review.

When choosing a surveyor it is important to remember that if a negotiated settlement cannot be agreed then the rent may need to be settled by a third party surveyor acting as an independent expert or arbitrator. Your surveyor should have the experience to prepare submissions and counter submissions to submit to the third party independent expert or arbitrator. They should also be aware of the detailed procedures involved in such a dispute.