Negotiation is always the best method of handling a rent review and one of the HS Legal solicitors team of experts will assist you in this process to ensure a positive outcome for your business. At HS Legal Solicitors we understand that solving this issue promptly is best for you and best for your business and will advise you of the best way of achieving a positive outcome.

What is rent review?

Rent reviews allow landlords of commercial property to periodically regulate the rent charged to tenants based on different factors.

As a landlord you will want to review the rents on your properties as set out in the lease. Doing so will increase your rental revenue and profitability.

As a tenant you will want to minimise your liability and so proper negotiation and representation at rent review will be important.

Why do commercial leases have rent review clauses?

Where market rent is payable, the landlord will want to ensure that it always receive the maximum possible rent for the site and not bound by the rent amount which was set at the start of the lease.

How can rent be reviewed?

There are various ways in which the rent can be reviewed:

• the landlord and tenant might agree to increase the rent in fixed amounts each year
• the landlord and tenant might assess the rent based on the tenant’s turnover at the premises
• the rent is based on market values

The most common and typical type of rent review is the open market rent review.

How often do rent reviews occur?

Typically rent reviews occur every 3 – 5 years, depending on the length of the lease. A rent review clause in a commercial lease will dictate how often a rent review will occur, the method, procedure and how to treat disputes.

How is the value of the rent decided?

• Open market rent review involves a periodic revaluation of the rent based on what the rent would be if the premises were re-let fresh at the date of review.
• The new rental amount is based on rents in the local market for similar leases. If after the review, it’s found that the rents in the local area have increased then the rent for the premises can be increased.

In most situations, the landlord and tenant should try and agree to the new rent themselves.

Normally, both parties appoint their own property surveyors to help manage the process and negotiations.

Rent reviews in commercial leases are complex and should be carefully considered and negotiated. If you have any specific questions or would like more detailed advice on rent reviews, then please contact on 01206500181.

Our commercial property specialists are delighted to offer fixed costs for landlords and tenants in respect of the granting of leases, giving you control over the level of service and the cost of the same.

• New build arrangements, construction documents, warranties, and matters alike
• Multiple property titles
• Unregistered titles
• Extra negotiations and advice beyond what is included within the packages
• Title defects that require advice, insurance or other
• Agreement for leases, licences for alterations, licences to underlet and, consents and alike
•  This list is not exhaustive but covers many eventualities

We will as soon as we become aware of something that is not included within your chosen package, whether that is at the outset or during the transaction, make this immediately known  to you, so you can decide whether you wish to instruct us to cease acting, or proceed with or without assistance  upon those matters or otherwise. We will at such time provide you with an additional fee estimate for any extra work required. Please note that our fixed fees are payable whether or not your intended lease completes on the number of hours that you wish for us to perform in our duties.

New commercial lease

Our fees include:

• New build arrangements, construction documents, warranties, and matters alike
• Multiple property titles
• Unregistered titles
•  Negotiations and advice
• Title defects that require advice, insurance or other
• Agreement for leases, licences for alterations, licences to underlet and, consents and alike

• obtaining your title deeds from you or your lender;
• checking the deeds and preparing a draft Contract;
• preparing replies to enquiries standard and specific enquiries;
• agreeing on the terms of the Contract and Lease;
• reporting to you with the Contract and Lease for signature;
• preparing Completion Statements for your approval;
• agreeing on necessary apportionments;
• when everyone is ready and the completion date has been agreed, completing the transaction.

For Tenants

We can assist you with all aspects of taking a lease of a property, whether you are an experienced tenant or embarking on a new business venture. Our expert commercial property solicitors will give you clear, concise and practical advice tailored to suit you.

Our areas of expertise include the following:

• Negotiating and advising on heads of terms
• Drafting and negotiating new leases, renewal leases and agreements for lease
• Negotiating licences for alterations including advice on reinstatement provisions
• Making licence to assign applications including advice on the conditions a landlord may be able to attach to any consent
• Advising on break clause issues
• Advising on rent reviews, service charge and security of tenure issues
• Advising on “green lease” clauses and The Green Deal
• Advising on issues affecting the landlord’s title such as rights of light and covenants
• Drafting and negotiating deeds of variation and surrenders of leases

For Landlords

Our solicitors have vast experience in dealing with letting all types of property from large industrial estates, shopping centres and prestigious office developments to high street retail premises, pubs and single office units.  Whatever your objective, we will work with you to achieve your goal.  Our skills include:

• Advising on heads of terms
• Drafting and negotiating new leases, renewal leases and agreements for lease
• Drafting licences for alterations including advice on reinstatement provisions
• Dealing with licence to assign applications including advice on the conditions you may be able to attach to any consent
• Advising on break clause issues, rent reviews, service charge provisions and security of tenure
• Advising on “green lease” clauses and The Green Deal