Rent Review and Lease Renewals
A residential lease is usually only for 6 to 12 months so a rent review is normally unnecessary. However, if a landlord allows a tenancy to continue beyond the initial short term then a rent review will probably be made if there is provision for one in the lease.
As the procedure for ensuring the property is getting the correct rent includes assessing the size and condition of the property, and the market rate for comparable properties with similar leases, it can be worth getting assistance from a Chartered Surveyor specializing in this area to make sure that you do not either pay too much as a tenant, or receive too little as a landlord.
Most commercial property lease agreements allow for rent to be reviewed on a regular basis throughout the term of the lease. This involves establishing the open market rental value which is based on many factors including the size and type of property, the terms of the lease and the rents on similar properties.
A Chartered Surveyor can help you through the legislation and valuation issues to achieve the best result.
It is usual for both landlords and tenants to appoint their own Chartered Surveyor to process the rent review as surveyors have the contacts, market knowledge to gauge fair market rent and the expertise to accurately assess the lease clauses and reach agreement with the other party.
Do you carry out Rent Reviews?
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