What’s the purpose of a rent review?
Most leases longer than 3 or 5 years will contain a rent review, the aim is that the rent will keep up with inflation? So it’s just like reviewing the price of any of your other products or services.
How often are rents usually reviewed?
The lease will specify how often the rent is to be reviewed, most commonly it’s every 3 or 5 years.
Is it a rent review or just a rent increase?
Traditionally rent reviews are called upwards only this is a bit misleading, in most cases a lease will say the rent after review will not be less than the rent prior to review.
I am a tenant why should I trigger a review?
The main reason is certainty, so you know what your rent will be going forward, the second reason is that the Landlord can start the review process a long time in the future and if you eventually agree an increase you could have years of back rent to pay plus interest in one lump sum
How is the new rent decided.
Normally the lease will provide details, but the general idea is that it should be the rent that the property would let for at the time of the review assuming the tenant had complied with the terms of the lease particularly regarding condition.
What if the landlord and tenant can’t agree?
In most cases rents are agreed between the landlord and tenant, however if this isn’t possible for any reason the lease should have a way of dealing with this, the most common is that the matter is passed to an independent person to deal with, he is often referred to as either an expert or arbitrator.
Is there a difference between an independent expert and arbitrator?
Yes there is, in very simple terms an independent expert will look at the cases put forward by the land lord and tenant, or more likely their surveyors and also use his own professional expertise to reach a decision where an arbitrator can only rely on the information put to him.
If we can’t agree and my review is going to an independent expert or arbitrator can you help.
Defiantly, the presentation of the argument is very important.
Do I need my own surveyor?
You don’t need to but you should take advice certainly if the other party, your landlord or tenant is using an advisor.
Why should I take advice?
To make sure the procedure is followed correctly because if it’s not the rent review may be invalid and if you are the landlord to make sure you get the best rent, if you are the tenant to make sure you don’t pay to much.
So why should I use Craven Wildsmith?
We are qualified
We are experienced
We know what we are capable of and only act within our areas of expertise.
Neal Craven our lead surveyor started work as a commercial surveyor in the region in Doncaster in 1986 he is a assessor for and fellow of the Royal Institution of Chartered Surveyors (RICS). “the world’s leading professional body for qualifications and standards in land, property and construction”
The RICS say “Only members who are major achievers in their careers may apply to become a fellow of RICS. They will be leaders in the profession; active people who have completed unique projects or contributed to the profession”
Our property is out of your region, how do we find a compliant surveyor?
You should look for a member of the RICS, they have a find a surveyor service at http://www.ricsfirms.com/ Any RICS member offering rent review services should have the relevant experience and expertise and have appropriate professional indemnity insurance.
DISCLAIMER
The above are general observations, each lease is different and these points are not intended to replace specific advice from a qualified and experienced professional. For independent advice contact
Craven Wildsmith
41 Nether Hall Road
Doncaster
DN1 2PG
professional@cravenwildsmith.co.uk or
Telephone 01302 36 86 86
Text 07702 040 660
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