A rent review is a provision within a lease whereby the amount of rent is to be reviewed at a stated date, usually in the rent review provision clause within the lease. In the majority of cases rent reviews occur every 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 lease.
All leases differ between properties, 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.
The second area of expertise required for a rent review is in ascertaining the rental evidence available on comparable space and thereafter using negotiating skills to agree the correct level of rent.
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 the third party independent expert or arbitrator. They should also be aware of the detailed procedures involved in such a dispute.