A Guide to Rent Reviews

It is important to get clear, impartial and expertnormally an assessment of what the premises
advice on the Rent Review procedure, so youwould let for in the open market on similar terms
should speak to a qualified Chartered Surveyorto the actual Lease. There can however be
who is a member of the Royal Institution ofparticular aspects which will affect the quantum of
Chartered Surveyors, one of the most respectedrent for instance the identification of tenant's
property organisations worldwide.improvements.
Whether you are a Landlord or a Tenant they will6. Subject to the parameters set out in the
be able to advise you and negotiate the best rentLease, the rental will normally be based on rents
possible. Prior to any negotiations they will providerecently agreed for "similar" property adjusted to
unbiased advice on the likely outcome. Each renttake into account any physical differences or
review should be thorough researched andvariations in Lease terms.
Chartered Surveyors have an expert knowledge7. If the Landlords' and Tenants' agents are unable
of the latest case law.to reach agreement, the matter is usually
Commercial estate agents should use the latestreferred following the appropriate application, to
computer packages to assist them in theiran Arbitrator or Independent Expert.
research.8. Once the rent is determined it is legally binding
Outlined below is a brief resume to the Renton both the Landlord and Tenant. It can only be
Review procedure.appealed via the Courts of Law and there are
very few grounds of appeal.
1. The machinery governing the conduct of the9. At the conclusion of the negotiations, the Lease
Rent Review will be set out in the Lease of thewill normally require the Parties to sign a rent
premises.review memorandum recording the Agreement.
2. The Lease will state the date on which the10. The assessment of the revised rent is a highly
review of rent is to have effect and if and whenspecialised procedure. There is much at stake for
the Landlord must serve a formal Notice on theboth the Landlord and the Tenant and the parties
Tenant calling for the review.should be professionally represented throughout
3. The Lease may contain a specific requirementby an experienced and qualified Chartered
for the Tenant to serve a counter notice inSurveyor specialising in Rent Review negotiations.
response objecting to the Landlord's proposal.There are many "pitfalls" and "traps" to be
4. There may be time constraints that need to beavoided so you need to speak to a Chartered
adhered to in points 2 and 3 above.Surveyor at least 6 months in advance of the
5. The basis upon which the rent is to beRent Review date.
calculated will be set out in the Lease. It is