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What is a Rent Review?
Rent reviews are standard provisions in many commercial leases in the UK. They are a re-assessment of rental fees designed to keep them in line with the amount a new tenant would pay for a comparable space.
This task typically takes place every three or five years, but their frequency differs depending on the quality of the asset. The commercial rent review may be written into your original agreement whereby after a certain period, the landlord has the right to assess the charges and adjust accordingly.
Commercial lease advisory
We can provide commercial lease advisory services for landlords and tenants. With over 100 chartered surveyors across the UK, our team are experienced in advising property owners and occupiers on all apects of the lease cycle. Contact our team today to find out how we can assist.
Why is it important to conduct a rent review?
As a landlord, it is important to conduct frequent reviews to assess whether your rent charges match current market rates. The benefit of negotiating these well can result in an uplifted income which, in addition to improving cash flow, can positively impact the property’s capital value.
"Regular commercial rent reviews are crucial for maintaining competitive lease agreements, ensuring profitability and aligning costs with market trends—making them a cornerstone for sustainable business growth and financial planning."
Our commercial rent review services
Commercial rent reviews are completed by our Surveyors. They will create detailed reports to help landlords make more informed decisions. Lease adjustments are sometimes disputed, and we can also help owners and occupiers find an agreeable amount that works for both parties.
How are commercial rent reviews calculated?
Commercial rent reviews can be calculated through two different methods:
- Index-based review – The rental fee rises in line with an index such as the Retail Price Index (RPI)
- Open market valuation – A ent review surveyor will conduct a detailed appraisal of the property’s value based on other comparable assets in the market. This assessment method can lead to substantial increases if there is significant demand for the building type and location
What is the commercial rent review process?
- Notification – The landlord will inform the tenant of the appraisal. Providing around three months’ notice is advised
- Assessment – A rent review surveyor will determine the building’s rental value based on other similar properties in the area
- Serve notice – The occupier will be told what the new fee will be. They will have 28 days to issue a counter letter if they wish to challenge an increase
- Negotiate the figure – If a counter-notice is issued, the owner and occupier can negotiate a mutually acceptable lease amount. A rent review surveyor can assist if an agreement cannot be reached
- Document the decision – A document detailing the new amount agreed on, date of appraisal and when the new fee applies will be produced and signed by both parties
Experts in commercial property
Contact our team of leading auctioneers, property agents, and RICS-qualified surveyors today.
Why choose Eddisons for a commercial rent review
With a hugely experienced Lease Advisory team, we are well-placed to carry out commercial rent reviews and can act on tenants' behalf in such matters. This formal representation ensures a level playing field and a fair process. Some other reasons you can depend on us include:
- We are RICS-accredited
- We have more than 180 years of experience in the property industry
- We are highly rated, with 100% of reviewers recommending us on Reviews.IO
- We have 30 offices nationwide, so one of our 450 experts will never be too far away
Arrange a commercial rent review with a surveyor today
If you are facing a commercial rent review or need to conduct one and would like advice, please use the ‘get in touch’ form below and one of our team will contact you to discuss your options. Alternatively, call 0800 051 2593 at your convenience.
