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Rent Reviews

Leases of commercial buildings can prove to be complex documents, governing the relationship between landlord and tenant. Arguably, the most complex provisions of the lease are those relating to rent review.

The basis on which the rent can be determined upon review will be specified in the lease agreement and it is for each individual lease to determine the mechanism used where the most common form still remains an open market rent review. The open market rental value will be affected by the general level of rents for similar premises in the area.

Although complex, this type of review does allow the rent to be set at a level that is in-line with market conditions at the time of the review. That said, it is common for open market rent review provisions to be drafted to provide for upwards only reviews meaning that on review, the landlord will either retain the level of rent payable or benefit from an uplift.

When the time comes for the rent to be reviewed, the procedure can be commenced either by notice or by the parties entering into negotiations. It is common for a lease to stipulate that a rent review will take place every five years. However, a trend towards more flexible, shorter leases has seen rent review increasingly taking place at three year intervals.

Smiddy & Co provides a comprehensive service for both Landlords and tenants. We have the ability to analyse comparable evidence to ensure the best outcome and offer advice on relevant procedures including the following:

  • Rental value
  • Lease clauses and procedure
  • Negotiation
  • Assessing prospect of 3rd party dispute resolution
  • Preparing submissions for 3rd party (arbitration or independent expert)

A little bit about us...

Smiddy & Co is an independent commercial property consultancy with its Head Office based in the Hertfordshire town of Watford and subsidiary office in Leighton Buzzard. We provide a forward thinking, professional yet personal service with expert knowledge gained through experience and market intelligence. We always seek to achieve best results for our clients.

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Watford – 01923 911007
Hemel Hempstead – 01442 601007
Leighton Buzzard – 01525 623007

info@smiddyproperty.co.uk

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