Rent reviews require the landlord and the tenant to agree the ‘market rental value’ for the property which sounds straightforward enough, particularly if a similar property nearby has recently let in the open market, but in reality negotiating the successful outcome to a rent review is more complex as the terms of individual leases can have a significant affect upon value.
We specialise in industrial/warehouse, office and retail property and our qualified professional surveyors have expert knowledge of these markets, supported by an extensive database of transactions. We also have detailed knowledge of landlord & tenant legislation and rent review case law that is essential for analysing and properly interpreting market transactions and applying this experience to achieve the best results for our client, whether a landlord or as a tenant.
We frequently prepare Expert Reports for submission to Independent Experts and Arbitrators.
In an Arbitration, where acting for a tenant, our surveyor successfully argued a 25% reduction in the rent that should be payable simply as a result of the use and interpretation of the word ‘and’ in the user clause of a lease. The result – a nominal increase in rent for our very satisfied client!
The other important factor in a depressed market is the length of lease that must be assumed when the lease is renewed – if the assumed term is long then a substantial rent deduction from market rent can be argued.
Landlords and tenants should seek advice at an early stage, well before the rent review date, as thorough preparation is key to a successful strategy and result.