Rent Reviews

Rent reviews form an essential part of the lifecycle in the lease process.

For landlords, they represent an opportunity to ensure that the tenant is paying the market rent and to protect its premises from inflationary and market pressures.

For the occupier, it forms a risk to profitability and an increase to occupational costs. Rent reviews can take various forms, including:

• Open market (upward only) – This is the most common type of rent review in the UK
• Open market (upward or downward) – These are relatively uncommon in the UK
• RPI Reviews – These are related to the rate of inflation measured by the prevailing RPI rate at the review date
• Fixed Reviews – These are set within the body of the lease
• Annual turnover reviews: These can vary from ratcheted reviews to base plus turnover reviews. Careful attention must be paid to the wording of the turnover provision