Rent and rent review

Reserving and paying rent

The amount of rent must be 'certain'—see Practice Note: Leases and licences of land—key features and differences—Term which is certain. This does not mean that the lease must state the actual figures for the whole of the term. However, there must be a mechanism (usually a rent review clause) allowing the rent to be ascertained with certainty throughout the term.

No particular form of words is required to reserve rent, although the formula 'yielding and paying during the term' is widely used.

Although in itself a strong indicator that the parties intended to create a tenancy, rent is not required for a tenancy to exist. If the other 'hallmarks' identified in Street v Mountford are present (ie exclusive possession of defined premises for a term), then a tenancy can exist even if no rent is reserved or payable—see Practice Note: Leases and licences of land—key features and differences.

Commercial rents are usually paid in advance by equal instalments on the usual quarter days (25 December, 25 March, 24 June and 29 September) or on other dates specified in the lease as rent

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