Guide to rent reviews: what are they?

July 1, 2016

A rent review is a pre-arranged assessment of the amount of rent that is paid to the landlord or letting agency from the tenant.

The main purpose of a rent review is to protect the landlord from the effects of inflation. However, this can also benefit the tenant, as there is often room for negotiating price of the rent.

A rent review is also a good opportunity for the tenant to ask for certain repairs, replacements or improvements within the property.

For more information on how can assist you with your commercial property, click here.

When does a rent review take place?
Rent reviews usually occur every three to five years. However, this can vary from property to property.

Originally, UK commercial leases were granted for at least 20 years. But with the end of World War II bringing high inflation levels, the average length of a commercial lease decreased, making rent reviews more commonplace.

Negotiating the rent increase
It’s important to keep your eyes and ears open to the rent levels in your local area. This will not only give you a better idea of how much your rent will most likely increase to after your review, but will also give you a higher chance of being able to negotiate a lower price.

TOP TIP: Any evidence that the proposed rent is higher than the fair rent will help with your negotiation, so keep hold of your findings.

It’s important to remember that there are a variety of other factors that may put you in a stronger position to negotiate the rent increase. Some examples are:

You have been a good tenant up until this point, and the landlord is keen for you to continue renting the property.
The local property market is slow and, if you were to leave the property, the landlord would experience difficulty finding another tenant.
The landlord, in one way or another, has failed to live up to his obligations. You will need proof of this.

Resolving a dispute
How to go about resolving a dispute may vary, depending on the contract. However, the usual procedure is that a third party should resolve the disagreement.

This third party should be agreed upon by the tenant and the landlord, and is usually a solicitor or chartered surveyor that specialises in rent reviews.

The resolution could now go one of two ways: either the tenant and the landlord each present their case to the third party, or the third party will decide the new rent based on their expert knowledge.

The process for resolving a dispute is usually relatively quick, but can vary on a case-by-case basis.

If the tenant is unhappy with the decision that has been made, it’s possible to appeal through the courts. However, this often proves costly.

Here at Watsons Solicitors, we have a dedicated team of experts in property law. For a confidential chat about your requirements, do not hesitate to give us a call on 01925 571 212 or fill out our contact form.

Contact Us

If you are interested or require any information on any of our services then please get in touch for an appointment on:

 01925 571 212
Mon-Fri: 9am - 5pm

Latest News

Compromise is the perfect solution to flexible working requests

A Cheshire-based employment law specialist believes compromise is the ideal solution to flexible working requests. The goalposts shifted considerably during the coronavirus pandemic with almost half of adults working from home. According to data from the Opinions and Lifestyle Survey (OPN), more than eight in 10 workers who had to do their job from home […]

Ageing population highlights importance of writing a will

A Cheshire-based wills and probate solicitor thinks that there is no time like the present for getting your affairs in order and writing a will with the age of the population on the rise. Recently released figures from the Office for National Statistics (ONS) revealed that the number of people in England and Wales aged […]

Family solicitor Lauren celebrates anniversary with step towards key accreditation

Lauren Soutar marked her one-year anniversary at Watsons Solicitors by taking a significant step closer to acquiring the Law Society’s Children Law Accreditation. Tuesday 18 October was exactly one-year since Lauren joined the Warrington-based firm as a family lawyer. By the time that date came around, Lauren had undertaken the Children Law scheme’s mandatory three-day […]

Trainee solicitor Hannah shortlisted for top Warrington Business Awards honour

Hannah Dale and Watsons Solicitors are celebrating after the trainee was shortlisted for the Apprentice of the Year honour at the prestigious Warrington Business Awards. Hannah is on the three-strong shortlist for the award which is open to any individual who has undergone a full-time training position during the period from January 2020 to September […]

Watsons Solicitors
Lexel Accreditation
Children Law Accredited
Conveyancing Quality

Watsons Solicitors is a trading name of Watsons Solicitors Warrington LLP a Limited Liability Partnership registered in England and Wales registered number OC386012 whose registered office is 13 Bold Street, Warrington, WA1 1DJ.

Watsons Solicitors Warrington LLP is authorised and regulated by the Solicitors Regulation Authority number 598547.

Website managed by Outwrite PR, an online reputation management agency
envelope-oclock-ophonefax linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram