How a chartered surveyor can help in assessing the market rent in a rent review.
Acting on behalf of a client with a portfolio of commercial properties, we were instructed to carry out the negotiations with a high street bank, in the rent review that is 5 yearly.
A rent review clause enables a landlord to review the rent periodically. In this case study, the rent review was 5 yearly, and the rent which was set 5 years ago meant that there could have been a change in the market with an uplift due. By having a professional advisor on hand, an assessment of the rent could mean an increase in the investment value and income.
Rebecca carried out a market review, and provided her advice and recommendations to the client. Following agreement with the client, she commenced discussions with the tenant, or in this case the bank’s representative surveyor. It was a tough negotiation as some tenants such as banks have their own RICS Surveyor, but we were able to argue our case with market evidence, and we settled the review with a small increase of rent.
This process involves drawing up the new rental terms in a document called a Rent Review Memorandum, which is then provided in duplicate to each party for signature and it is then attached to the lease as a record.
We were able to use our local knowledge and experience to get the most favourable outcome for our client.