Rent reviews are a normal and common occurrence when you have a commercial property lease and, whether you are a landlord or a tenant, you will have to deal with them at some point during your contract.
In today’s current market, rent reviews often tend to bring with them an increase in rent for the tenants involved. Although some market rents have remained static or have even reduced slightly, in some parts of the country, rates have been increasing for some time. So, if you are due a rent review soon, it is highly likely you will be paying more rent. No one wants to pay more, but fully understanding the process is vital for protecting your business.
When To Expect A Rent Review
Typically, rent reviews occur every three to five years. However, exactly when your rent review is carried out depends on the rent review clauses laid out within your commercial lease. If you are unsure about any clauses within your commercial lease, then a commercial rent surveyor will be able to review and explain the clauses for you.
Disputes With Your Landlord
If you believe that your rent charges are unfair or are breaching your lease terms, then as a tenant you have the right to appeal. In order to do this, you need to make sure you follow the procedure for a third party dispute resolution, as agreed within your lease. You will be able to find further details about this within your rent review clause, but this sets out the agreed procedure for a dispute resolution. In order to settle any grievances, you must discuss these in full with your lawyer before you do anything else as your lawyer will be able to advise you on the best way to proceed.
Beware Of Delays
It is important to know that in most leases, your landlord is under no pressure when it comes to the timing of rent reviews. Even if your rent review date passes, then in most cases it can take as long as they like to find a surveyor to carry out the rent review. In many cases, the surveyor is in no hurry either and it isn’t unusual for months to pass before your landlord decides to carry out an overdue review.
You mustn’t let this lull you into a false sense of security, as it is inevitable that your rent review will catch up with you. Once your landlord has gotten round to processing a rent review, the new rent will get backdated to the point where it was supposed to be applied.
However, the unfortunate consequence of this for you, as the tenant, is that there will be a huge bill. Ideally, once you are aware of an upcoming rent review date, then it is worth getting in touch with your landlord to discuss it. For Northern businesses, you may also want to seek advice from a chartered surveyors Manchester based to discuss what you can expect in the review.