Rent Reviews typically occur every five years in a traditional commercial property lease and allow the assessing and adjustment of commercial rents to the current market level at the date of the actual rent review.
The rent review clause in your lease sets out when each review will take place, the method of review, assumptions and disregards to be made when valuing the premises for the purpose of rent review, the procedure to be followed, and provisions for dealing with disputes if they arise.
Rents could go up or down, however, most landlords will word clauses to provide for ‘upwards only’ reviews.
They almost invariably bring an increase in rent for you, the tenant.
Revaluation in the open market is the most common method of recalculating a commercial rent at review date. However, in the UK there are 3 common methods used to review the rent
3 Rent Review Methods
The rent is decided based on how much the property would be worth if listed on the open market now.
The rent is decided based on your business’ financial turnover. A minimum rent level will apply.
The rent will change at the intervals set out in your lease in line with the Retail Price Index (RPI).
It is worth noting that if a Rent Review is delayed for whatever reason, the new rent can be back dated to the date it was supposed to have been applied and you will be liable for the new rent amount from that initial Rent Review Date.
About One One One
One One One can act successfully on behalf of tenants in commercial rent review matters.
We are a London commercial property company who only ever act for tenants.
As a business, we were formed to make UK companies stronger through their real estate decisions. The success we have achieved to date is by providing a service that is aligned with our clients.
We believe that our values are imperative to how we conduct business and run our company. They are the building blocks of our culture and they support our common business principles and our people. They form part of all our decision making in everything we do.