As a landlord, you’ll want to receive as high a rent as possible for your commercial property. It’s common for commercial leases to contain rent review clauses which allow landlords to review the rent and determine what can be achieved.
Tenants will want to keep the rent as low as possible and they will be able to negotiate any increase.
What is a Rent Review?
Depending on the length of the lease, a rent review is usually every three to five years. Rent reviews allow landlords of commercial property to periodically adjust the rent charged to tenants based on various factors including better alignment with current market conditions. A rent review clause in a commercial lease will dictate how often a rent review will occur, the method, procedure and how to deal with disputes. Ensuring that the lease contains rent review provisions and that you implement them will increase your rental income and profitability and in turn, the capital value of your property.
The are various methods to review rents and our team can discuss which may be the best option for you to incorporate in your lease. If you already have a lease, then it should be stipulated in the lease.
You will need to inform the tenants in good time if you are planning to increase the rent and typically provide good notice so that you can start the procedure to increase the rent.
If both parties are unable to agree the new rent, there are established processes in place to refer the determination to a third party, usually, a surveyor and this will be set out within the rent review provisions in the lease.
You should always seek advice from a specialist commercial property solicitor to help you with this process. We can help you negotiate with your tenants and liaise with a surveyor to accurately assess what rent you can achieve or what other terms can be negotiated.
How We Can Help
Using our experience and wealth of knowledge, we are able to offer expert advice on all the possible methods of increasing your commercial property rent based on your requirements.
We are able to explain clearly the legal issues and provide open, honest and professional advice.
How to Contact our Business Solicitors
To speak to our commercial property solicitors today, simply call us on 0161 929 0121, or allow a member of the team to get back to you by filling in our online contact form. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.