Rent review – Useful information
Understanding the procedures of a rent review can be complex however there are various hints and tips which may assist if negotiating with either a Landlord or Tenant without representation.
Below are ten useful and important points to consider when commencing the rent review process which may affect rental value.
- Most rent reviews are upward only but not all
- Check whether the rent review is based upon Open Market Rental value or RPI
- Tenants continue to pay the passing rent until the revised rent has formally been agreed
- Ensure time is ‘Not of the essence’ and time limits are adhered to strictly
- Check the various ‘user’ clauses within the lease
- Allow yourself time to negotiate
- Be aware of the market and recent comparable evidence before undertaking any negotiation
- Check Alienation provisions within the lease
- Ensure any offers made by either a Landlord or Tenant are on a ‘Without Prejudice’ basis
- Be aware of the Third Party procedures which will be set out in the lease
- Ensure any agreement is documented by way of Rent Review Memoranda