Chartered Surveyers & Valuers

Rent reviews

We Act for both Landlords and Tenants on most types of property. We can advise on the market rent for property based on the terms of your lease, and from our extensive local market knowledge. We will negotiate rent reviews and lease renewals including representing clients in submissions to Arbitrators or Independent Experts for determination.

Commercial leases generally provide for the rent to be increased periodically to stay in line with market rental values. This allows Landlords to grant leases for the length that many tenants require without having to restrict rent to the initial sum agreed.

Reviews are normally to ‘market value’ and ‘upwards only’ every three, four or five years. There are other forms of review based upon business turnover and pedestrian footfall.
Most reviews are to ‘market rent’ although the lease often defines hypothetical circumstances including vacant possession, good repair, full lease term etc.

A property is compared with others which are similar and have been let on the open market recently. In practice, no two properties are identical. Adjustments have to be made for location, size, layout of accommodation, condition, use, rent review pattern, Tenants improvements and many other variables.

The Landlord and Tenant generally appoint valuers to value the premises taking into account all of the variables and market information. The respective valuers negotiate the market rent using their local market knowledge and testing each other’s assumptions
The procedure for reviewing the rent is laid down in the lease but most leases provide for the landlord to serve notice prior to the review date with a suggested revised rent based upon the valuation.
 
The tenant appoints a valuer who advises on rental values and makes a counter proposal to commence negotiations.
Failing a negotiated agreement, the rent is decided by an independent valuer or arbitrator.