Rent review

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Need support negotiating rent review provisions? We can assist.

The Tenant and Landlord will be required to come to an agreement as to the amount of rent to be paid. However, both parties will need to consider how that figure has been reached; in other words has the value of the rent been based on the property’s rental value?

Leases of commercial buildings can prove to be complex documents, governing the relationship between landlord and tenant for terms which commonly extend to 25 years. Arguably, the most complex provisions of the lease are those relating to rent review. It is an area that has taken up considerable court time and expense to determine disputes between landlords and tenants regarding the amount of rent passing at various stages throughout the life of a lease.

To minimise the risk of unwelcome resistance, delay and expense when the rent is being reviewed, both landlords and tenants ought to ensure that they are fully aware of the rent review provisions of a lease when taking an existing lease of commercial premises or that they ensure that time is taken to carefully negotiate those provisions on the grant of a new lease.

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