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Commercial leases will often contain rent review clauses at regular intervals in order to review the annual rent to the prevailing market rate.  The intervals and conditions of the reviews are determined within the lease itself, which is to say they are agreed upon during the initial leasing process.  It is not uncommon for a landlord or tenant to arrive at the rent review to discover that the lease wording is not necessarily as favourable as it could be had attention been given during the leasing process – visit our Advisory page for further detail.

It is a commercial reality that rent review clauses are frequently causes of dispute with the parties interpreting wording in different ways to suit their own requirements.  Knowledge and experience of conducting reviews is therefore critical in achieving the best possible outcome.

The rent review process typically involves the parties appointing their own surveyor to consider the lease wording, previous case law guiding the position, the property in question, market conditions, and thereafter negotiating to settlement.  If a rent review cannot be agreed through negotiation, the matter can be referred to alternative dispute resolution in the form of Arbitration or Independent Expert determination.  In either case, your surveyor will make representations on your behalf.

Poorly conducted reviews can result in financial loss and it is imperative that you seek the appropriate advisor in order to achieve the best result.  At Chambers Surveyors, we typically conduct full case handling although can advise at any stage of the process.