Many commercial leases include a provision for a rent review that allows for the rent to be adjusted during the term of the lease.
There are different mechanisms for rent review and other important elements to consider before agreeing the terms of the lease. Our expert Real Estate solicitors can provide the essential advice to both landlords and tenants to ensure that the rent review provision in the lease is appropriate and beneficial to you.
Procedures for Rent Review
The specialist solicitors in the property Dispute Resolution team are able to effectively guide you through the rent review process.
How is the Rent Review procedure commenced?
Timing is all important when the time comes for the rent to be reviewed.
It is common that the rent review will happen very three or five years. The lease will define the date of the Rent Review.
The process is usually started by the Landlord who will serve a notice on the tenant. It is important that the notice is served at the correct date and by the correct method of service; failure to do so may result in the right to review being lost. The notice will set out the new rent. If the tenant disagrees then the tenant will need to serve a counter-notice. Again, there is often strict deadlines to comply with when serving the counter-notice.
What if there is a disagreement?
If the parties are unable to agree the new rent, then the lease will usually set out the process for determination. Often the lease will set out that the dispute is to be referred to an expert or to adjudication.
The surveyor or adjudicator will consider the terms of the Rent Review clause and therefore it is always important to obtain clear and effective advice when negotiating the terms of the lease and at the point of the rent review.
Our specialist Dispute Resolution team can provide a bespoke service in this regard. For more information about our expertise and how we could help you, please contact us.