Rent Review Property Owner FAQs

How much time do I need to prepare for a rent review?

Rent reviews typically occur every five years depending on the length of the lease. Don’t leave it to the last minute to consider your rent review strategy. There may be time limits stipulated in the lease’s rent review clause within which the landlord or tenant might have to issue or respond to a rent review notice. Eighteen months before the rent review date should give sufficient time to start checking the lease to ensure it doesn’t specify a time limit and to appoint a rent review surveyor. Missing deadlines can be costly: tenants could have to pay an inflated rent and landlords may lose the right to a rent review entirely.

Does the tenant pay rent while the level of rent is being disputed?

Yes. The tenant must pay rent at the old rate whilst the rent review is being negotiated. Once an agreement is reached the difference (back rent) will have to be paid. If the rent increases, interest often has to be paid on the overdue amount.

What is “Open Market Rent”?

Open Market Rent is the best rent a property might achieve if let on the open market, given a willing landlord and tenant and taking into account the terms of the lease and the state of the local commercial property market.

Why should we appoint a lease consultant for the rent review process?

Rent reviews can be technical and complex and in the current market it is more important than ever to ensure the full potential of the property is realised. Appointing a surveyor is the most effective way of accessing the open market, taking into account local comparables and negotiating allowances on specific points and assumptions. Surveyor’s fees are inexpensive in comparison to overpaying or under claiming rent or for letting the case reach arbitration.