Rent review procedures
Rent review procedures

The following Property practice note provides comprehensive and up to date legal information covering:

  • Rent review procedures
  • Date and frequency
  • Initiating the rent review
  • The form of notice
  • Serving the notice
  • Rent review disputes
  • Arbitration
  • Expert determination
  • Mediation
  • Back payments
  • More...

Rent review procedures

Date and frequency

The frequency of a rent review is a matter for negotiation. The most common period in practice at the moment is every five years.

Usually rent reviews take place on an anniversary of the term date. To avoid confusion at a later date, it is better to specify a particular date in a lease rather than refer to either the anniversary of the term or the lease start date.

Unless otherwise stated, the date on which the valuation takes place is the same as the date from which the revised rent becomes payable.

Initiating the rent review

The rent review clause should state who can initiate the review process; it will usually be either the landlord alone or both parties.

Some leases do not require a formal procedure to be followed and merely need one party to write to the other initiating the review. The lease may provide that the rent should be determined as soon as possible. Alternatively, more stringent requirements may be imposed such as the form of notice or counter-notice to be used, as well as time limits for service.

Where the provisions are linked to time limits or deadlines, either expressly or by implication, both parties need to establish whether time is of the essence. This is particularly significant where:

  1. the landlord must initiate review by a particular date, or lose the

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