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rent reviews

A landlord or tenant at some stage will need to consider the options available at rent review.

Establishing the so called 'Market Rent' is based upon numerous and varied factors to include the size and type of property, the terms of the lease (each is unique!!!) comparable evidence and its detailed analysis and most importantly the knowledge, experience and negotiating skills of the adviser.

Our professional services and experience can ensure you steer a course through the maze of legislation and valuation issues to enable you to achieve the best possible result. In this regard, our fees are often incentive based.

further information

If you would like further information on landlord and tenant issues, including rent reviews and lease renewals then please contact us.

frequently asked questions

What is a Rent Review?

Answer:         Most commercial/business lease agreements typically allow for the rent payable to be reviewed on a regular basis throughout the term of the lease.  Current modern leases normally allow for rent reviews to occur every 3 to 5 years.

The basis of a rent review is usually defined as open market rental value of the premises at the date of the rent review.


What is Open Market Rental Value?

Answer:         This is a figure  that a property could reasonably be expected to let in the open market on similar terms to that as laid out in the lease.  The open market rental value will be affected by a large number of factors associated not only with the general level of rents for similar property in the area but its use, configuration, size, specification and terms of the lease.  The variables associated with the assessment of an open market rental value are therefore  numerous, inter-related and often complex. 

How do I deal with a Rent Review?

Answer:         Expert advice is absolutely essential. 

Landlords and tenants must take expert advice on the receipt and service of notices under rent review and should use a suitably qualified surveyor to compile evidence, analyse the leasehold documents and thereafter handle negotiations.  In this regard baker commercial has the appropriate experience and expertise.

What happens if I or my adviser cannot come to an agreement on the new rent?          

Answer:         If you or your adviser are unable to reach a negotiated settlement with the landlord or tenant then the lease will almost certainly provide for an independent third party to be appointed to determine the rental.  At this point expert advice should be sought vis a vis the preparation of submissions to the appointed independent surveyor.  baker commercial has the appropriate expertise and experience in the presentation of submissions to  appointed independent third parties.

What are fees for advising and thereafter negotiating a Rent Review?

Answer:         The usual fees for advising and negotiating a Rent Review equate to between 5% and 10% + VAT of the annual average rental agreed.  However baker commercial (in a large number of cases) is prepared to deal with Rent Reviews on an incentive basis, ie a percentage of the rent saved when acting for a tenant and the rental increase achieved when acting for a landlord.  Precise terms on a case to case basis.