Rent Review

Rights and responsibilities outlined in the lease play a role in determining the results of a rent review. The state of the property market also has an impact on this outcome. When the market is thriving landlords often have power to push for rent prices. Conversely, in a weaker market tenants typically aim for reduced rents or additional benefits. Various factors such as property condition and the financial stability of the tenant also come into play during negotiations.

You should give notice and then start negotiations during which time you should consider hiring a surveyor to support you. Being well prepared is beneficial to both landlords and tenants before a rent review, as each need to understand the property’s condition and value against the current local market trends, as well as their rights and responsibilities under the lease.

Surveyors review the market rents for different types of properties and can provide you with advice throughout the review process. Both landlords and tenants have the option to hire their own surveyors as we suggest in order to protect their interests and reach an agreement on the rent by avoiding standstills and maintaining effective communication between the parties.

To assess the market rate of commercial rent during a rent review, there are two methods: 

• Retail Prices Index (RPI): this measures changes in the rent across the UK.
• Localised: observing comparables in the local area and reviewing lease advisory reports
  

The method selected will vary based on the landlord’s preferences and how detailed they want to assess the rent. Surveyors will conduct their calculations and discuss legal aspects outlined in the commercial lease accordingly.