All posts tagged "Rent Review"
Statement of Agreed Facts and Comparable Evidence
(2025 Sep) – On referral and in the process of agreeing a Statement of Agreed Facts, it appears – in my experience – to be taken for granted that the SOAF will contain proforma of so-called comparable evidence even if neither party’s surveyor has had any involvement with the evidence premises. And not only reliance […]
Rent review: interest on back rent (shortfall)
(2025 May) – Calculating interest on back rent following a rent review, many years ago, the author of a letter published in the Estates Gazette wrote about the difference in results that different makes and models of calculators produce. I think it’s something to do with the (behind-the-scenes) number of decimal points and the rounding. […]
Agreed areas and precedent
(2025 May) – At rent review, it’s usual for the surveyor who acts for one of the parties to tell the surveyor acting for the other party that what had been agreed previously should be agreed again – even if the latter is a different person. Where the parties’ surveyors are the same as before, […]
RICS-appointed Independent Experts over-stepping their authority.
(2025 May) – On referral of a rent review to an Independent Expert appointed by the RICS, I have had enough of (some) appointed chartered surveyors over-stepping their authority. An Independent Expert derives authority from the lease. Not the RICS. The RICS appoints the IE, that is all. After that, it is for the parties […]
Secondary trading positions and dominant occupiers
(2025 May) – Acting for the Landlord of a shop in London Road, Norbury, London SW16, let to a well-known corporate estate agent, the rent review was referred to an Independent Expert. Inevitably, the Tenant’s surveyor sought nil increase. I say ‘inevitably’ because multiple retailers and ilk tend to cite evidence involving other multiples and […]
Banks, property and rental valuation methodology
(2025 May) – Any surveyor whose landlord clients own properties let to banks will know that the surveyors that act for banks at rent review reason that the market rent should be valued using zoning methodology as if a shop. The reason being that is the only way the banks’ surveyors can minimize their clients’ […]
Case Law and Rent Review
(2025 May) – From Sir John Ritblat’s remark that property investment is 50%, property, 50% finance. I decided that rent review is 50% valuation, 50% case law. As ‘the’ specialist (not ‘a’ specialist as an arbitrator in the North of England said in a reasoned award and whose putting me in my place still irks!), […]
The Commercial Rent (Coronavirus) Act 2022
(2023 Mar) – Acting for Yellowdice Limited, the Tenant of a nightclub in London SE11, I have helped achieve its objective for the rent payable for the protected rent debt period defined by The Commercial Rent (Coronavirus) Act 2022. This Act has a short life so far as the dispute procedure is concerned. Application for […]
Covid-19 and rent review
(2020 Apr) – At rent review and lease renewal, the impact of the respiratory disease COVID-19, commonly known as Coronavirus, highlights two factors that are particularly important in negotiation and rental valuation: (1) post-review evidence and (2) post-review event. From case-law, the principles are reasonably straightforward to understand, even if not always appreciated! (1) Post-review […]
Rent review, evidence and GDPR
(2018 Jul) The General Data Protection Regulation (“GDPR”) came into force on 25 May 2018. Law-abiding businesses and organisations are checking whether computerised and manual records data/information and mailing lists are compliant, asking people to confirm opt-in. An opportunity for businesses to prune mailing lists, it is also an opportunity for anyone on a mailing list […]
Dispute resolution procedure at rent review
Feb 2016 – At rent review, the phrase ‘going to arbitration’ is often bandied about during negotiations as a means for one party to get its own way. Whether or not the parties can agree the rent without involving the dispute resolution procedure, it is common for a represented or experienced party to invoke as […]
Boot on the other foot
(2015 Feb) Whether residential or commercial property, there is a considerable amount of money to be made by playing your cards right. It’s not only investors that can play the property game, so too can banks. The ruling, per Mark Robert Alexander (As Representative of Property 118 Action Group) v West Bromwich Mortgage Co Ltd […]
Rent and Inflation
(2015 Jan) Whether landlord or tenant, it might be of interest to check whether the rent you are receiving or paying has kept pace with inflation, as measured by the Retail Price Index.I have designed a calculator that calculates the percentage change in the RPI and the adjusted rent. It;’s a two stage calculation. You […]
Open market rent review
(2014 Oct) A feature of investing in commercial property is the rent review. With residential BTL, rents can be increased but usually only at the end of the term if the existing tenant would pay more or on a new letting if the market is up to it or, as with ground rents, to pre-set […]
Upward-only rent review
(2014 May) – Contrary to popular belief, ‘upward-only’ rent review does not mean the rent must increase. An ‘upward-only’ review means that the rent payable after the review to open market rental is agreed or ascertained would not be less than the rent payable before the rent review, even if the open market rent were […]
Landlord Proposals
(2014 Mar) – Years ago, an institutional landlord, a well-known insurance company, whom I found myself acting against on numerous occasions, used to include £500 pa margin in its proposals for rent review which struck me as ambitious but in most cases nevertheless insurmountable. Thinking I’d like try the same approach, I experimented by recommending […]
Rent Review
(2014 Jan) – The purpose of a rent review (and where the basis is market rent) is to enable the landlord to obtain the market rent for the premises at the review date (or valuation date if different) and for the tenant to ensure it is not paying any more or less. The open market […]
Open Market
(2014 Jan) – The open market is made up of different ‘afford-abilities’, so, in linking the review to “open market rent” (OMR) ‘open’ means everyone and anyone (A). As indicative or comparable evidence, a new letting to an inexperienced first-time tenant at a rent that might amaze is as valid as any hard-driven bargain by […]
Economical Rent
(2014 Jan) – In business tenancy law, the actual tenant’s ability to afford the rent at review is generally considered irrelevant. So, the actual tenant faces a dilemma, because – unless the review goes to ‘arbitration’ – the tenant must decide what rent to agree and no tenant will willingly agree more than they can […]
Purpose of Rent Review
Dec 2013 – The purpose of rent review is threefold: 1) to enable the landlord to review the rent payable; 2) for the tenant to ensure the rent payable is no more or less than it should be; 3) for both parties to monitor the performance of the location […]
Procedure for review
Dec 2013 – The starting point for operation of a rent review is some form of notice. The form and phrasing of the notice, the timing of the notice, the mode of service, the identity of the recipient, the address for service, and so on, are all critical factors. Where a lease requires the tenant […]
Five Key Dates
(2013-12) For purpose of agreeing or determining a rent, there are five key dates: 1) the review date;2) the valuation date;3) the earliest date for implementing the dispute resolution procedure4) the date when the revised rent is payable; and5) the date when any back rent is payable. The review date is either specifically stated or […]
Purpose of Rent Review
(2013 Dec) The purpose of rent review is threefold: Reviewing the rent payable is all very well for landlords but for tenants ensuring it is no more or less than it should be is not how most tenants would view a rent review. For many tenants, the only way the business can remain profitable is […]
Procedure for review
(2013 Dec) The starting point for operation of a rent review is some form of notice.* The form and phrasing of the notice, the timing of the notice, the mode of service, the identity of the recipient, the address for service, and so on, are all critical factors. Where a lease requires the tenant to […]
Important – Take Notice
Dec 2013 – Amongst the many aspects of my work I love is lease analysis. Possibly it’s the same reason many people enter the legal profession, but for me the prospect of being able to pour over every word and phrase and get bogged down in detail is stimulating. Perhaps because investment is mostly about […]
Five Key Dates
Dec 2013 – For purpose of agreeing or determining a rent, there are five key dates: 1) the review date;2) the valuation date;3) the earliest date for implementing the dispute resolution procedure4) the date when the revised rent is payable; and5) the date when any back rent is payable. The review date is either specifically […]
What is professional advice?
Jun 1985 – The role of the valuer, at a rent review or lease renewal, is to argue for his client’s best interests and for the tenant, ‘best’ generally means the lowest rental. Most landlords and tenants get frustrated by the complexity of the rent review system, but many small tenants are expressing their annoyance […]