Commercial rent review and lease renewal surveyors for landlords and tenants

Most commercial leases let the rent be reviewed at set dates, usually every three, four or five years. At the review the landlord can propose a new rent, which the lease normally says should reflect the open market rental value. If the evidence doesn't support an increase, the tenant can oppose it.

It is the part of a commercial lease that says how the rent can be reviewed: the review dates, usually every three, four or five years; what the new rent is based on, normally the open market rental value unless the rise is fixed or linked to RPI; any time limits for notices and counter-notices; and who decides if the two sides can't agree, usually an arbitrator or independent expert appointed by the RICS.

Usually on open market rental value: the rent the property would achieve if let today to a new tenant, compared with similar premises in a similar location and on similar lease terms. Recent lettings nearby are the strongest evidence, and rents are compared per square foot, not by the headline figure.

No. A landlord can quote any rent they wish, but unless it's justified by the evidence, a surveyor can show why it's wrong. Act quickly, though: some leases set strict time limits for objecting, and if a counter-notice isn't served correctly, the proposed rent can become final.

At a rent review, usually not. Most reviews are upward only, so the aim is to keep the rent where it is or keep any increase to a minimum. At a lease renewal it's different: in certain circumstances, a new rent lower than the old one can be negotiated.

Often, yes. Most leases let the landlord serve a rent review notice at any point after the review date, even years later, and the new rent is then backdated to the review date. That can leave a tenant with a large, unbudgeted bill for back rent, so it pays to deal with the review on time.

The tenant can leave, or begin the process of renewing the lease. A crucial question is whether the lease is protected by the Landlord and Tenant Act 1954, which gives the tenant a legal right to renew and strengthens their negotiating position. A detailed knowledge of current market rents is essential when agreeing the new terms.

They are the formal notices that start a lease renewal under the 1954 Act: a Section 25 notice is served by the landlord, and a Section 26 notice by the tenant. Legal advice is needed to serve one, and the dates they set matter.

Most rent reviews and lease renewals are agreed by negotiation. If talks fail, most commercial leases provide for arbitration or expert determination: either side can ask the RICS to appoint an arbitrator or independent expert, both put their case in writing, and the decision is final.

With us, it starts with a free lease analysis, without obligation. After that, fees can be fixed, performance-based or a mix of the two, depending on your situation.