Rent reviews allow the periodical adjustment of commercial rents to the market level current at the date of review.They take place at whatever intervals are agreed in the rent review clause(s) in the commercial lease.Rent reviews typically occur every three to five years, a frequency reflecting the general shortening of lease lengths in recent times.
Traditionally UK commercial leases were granted for 20 years or more. Rent review clauses were introduced to combat high inflation levels after World War II and up to the 1960s reviews were at seven or 14 year intervals. Shorter leases of between 10 and 15 years are now more popular with landlords and tenants.
The rent review clause sets out when each review will take place, the method of review, assumptions and disregards to be made when valuing the premises for the purpose of rent review, the procedure to be followed, and provisions for dealing with disputes if they arise.
The RICS endorsed, industry-standard, Code for leasing business premises in England and Wales (2007) specifies rent review provisions as one of 10 requirements to ensure that a lease is Code-compliant.
Revaluation in the open market is the most common method of recalculating a commercial rent at review date.
When parties cannot agree a new rent, the rent review clause in the lease usually stipulates a procedure for a third party dispute resolution — for example the RICS Small Business Scheme for Rent Reviews.
Poorly conducted rent reviews can lead to financial loss, stalemate in agreeing new rents, and even termination of the lease.
Chartered valuation surveyors specialising in commercial rent reviews can act successfully on behalf of landlords or tenants in commercial rent review matters.
Bloomsbury Plaza Residents Association
It has been a great pleasure to work with you since AWH commenced the management. We have all been much impressed by AWH.
It has been a great pleasure to work with you since AWH commenced the management. We have all been much impressed by AWH.
Hanover Gate Mansions
Thank you for doing such a great job of managing the properties. Before you took over we always noticed that there seemed to be an unnecessary amount of gardening being done - at an excessive cost per year. We're pleased to see that the front garden looks just as nice but you've significantly cut the costs.
Removing the fire escapes, as well as improving safety will be a significant improvement to the light quality in the flats below, and will reduce the damage to the windows below.
- Lessee at Hanover Gate Mansions
Thank you for doing such a great job of managing the properties. Before you took over we always noticed that there seemed to be an unnecessary amount of gardening being done - at an excessive cost per year. We're pleased to see that the front garden looks just as nice but you've significantly cut the costs.
Removing the fire escapes, as well as improving safety will be a significant improvement to the light quality in the flats below, and will reduce the damage to the windows below.
- Lessee at Hanover Gate Mansions
Climpson & Co. Limited
What can I say but you're doing a fantastic Job and we appreciate all you're doing for us.
What can I say but you're doing a fantastic Job and we appreciate all you're doing for us.
Graham Properties
I would like to take this opportunity to comment that having dealt with multiple managing agents over the years, it was a breath of fresh air to deal with your company who sent everything across very precisely and efficiently and made the whole process extremely straight forward and easy, I very much appreciate it.
I would like to take this opportunity to comment that having dealt with multiple managing agents over the years, it was a breath of fresh air to deal with your company who sent everything across very precisely and efficiently and made the whole process extremely straight forward and easy, I very much appreciate it.
Chancellor Court N3
Moving the managing agents of our block of flats to Clive Greenwood and his team at Anderson Wilde & Harris, has proved a breath of fresh air. They have grasped the various inherited nuances that came with the block. They are swift to respond to every request or incident be they current, or future planned upgrade issues. The latter fully supported by an excellent AWH Building Projects Management team. They answer their telephones without having to go through time consuming switchboards, and reply almost instantly to messages and emails. Rapid communication and good advice has been the key for us and we are always felt to be important. What more should one wish for?
Moving the managing agents of our block of flats to Clive Greenwood and his team at Anderson Wilde & Harris, has proved a breath of fresh air. They have grasped the various inherited nuances that came with the block. They are swift to respond to every request or incident be they current, or future planned upgrade issues. The latter fully supported by an excellent AWH Building Projects Management team. They answer their telephones without having to go through time consuming switchboards, and reply almost instantly to messages and emails. Rapid communication and good advice has been the key for us and we are always felt to be important. What more should one wish for?
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