Monday, 26 March 2012
Rent Review Checklist
A handy Rent Review Checklist that will ensure your office rent is accurately and favourably reviewed at rent review.
The purpose of any rent review is to adjust the rent to the current market level at the relevant review date. Office tenants need to be clued up as to details and implications of the rent review clause within their office lease at the negotiation stage and before they sign anything. This will ensure that they can be best prepared for any rent increases during their tenancy and ensure their position is best protected.
- Make sure you are clear about the rent review clause. Most office leases provide that the rent will remain at the same level or increase at the rent review date. This is often referred to as an upward only rent review clause.
- Consider the effect of rent increases on your business BEFORE you commit to the lease in the first place.
- Make a note of the date at which the rent is to be reviewed to ensure you have adequate time to review your options and negotiate a fair deal with the Landlord.
- Remember that the rent can only be reviewed as stated in the lease, and that any unreasonable demands by either the Landlord or the Tenant can be rejected.
- Get accurate and up-to-date market analysis from your Property Agent at the rent review to help you assess whether the rent increase is fair and within market rates.
- Finally, make sure you are adaqutely represented by a Property Agent to handle the rent review on your behalf. Never try to negotiate your own position as the Landlord will have an instant advantage.
Find a Property Agent in your area here to help negotiate the rent at review and help assess all the options available to you.
