Rent Reviews – A Tenant Friendly Checklist
Rent Reviews can feel daunting, but with the right preparation and guidance, the process becomes far more manageable. Below is a tenant-focused checklist to ensure you are fully prepared.
1. Know your Rent Review Date(s):
This is simple but crucial. Check your lease to confirm when your rent review is.
2. Compile the Key Documents:
Ensure you have all the relevant documentation, as this will determine the mechanics of the review, including what assumptions and disregards will apply at review.
This includes:
- Fully executed original lease, side letters, licence for works (if applicable) etc.
- Schedule of Condition (if one exists, this is essential for understanding the condition of the premises)
3. Gather Comparable Evidence:
Market data underpins every rent review. Understanding what similar properties are achieving is essential. Adjustments should be made for size, condition, location, and lease terms, as each property is different.
4. Reach Out & Engage:
Rent reviews work best with open communication. Ensure you are dealing with the decision maker. If the Landlord hires an expert, so should you, as rent reviews can be very technical.
5. Ask for MM for Help:
Rent reviews require a specific skill set, and experience matters.
Working with a specialist ensures:
- Interpret complex lease wording from a commercial perspective
- Provide robust comparable evidence
- Handle negotiations
Murphy Mulhall’s team has the expertise to guide you through the entire process from start to finish.
6. Be Prepared to Go to Third Party:
If negotiations reach an impasse, the rent review clause within your lease will provide for:
- Arbitration
or
- Independent Expert Determination
This is normal and sometimes the only way to achieve a fair outcome. Being willing and prepared to go to third party can also strengthen your negotiating position.
Conclusion
A rent review doesn’t have to be stressful. With good preparation, the right data, and expert guidance, tenants can potentially secure fair outcomes.
If you have a rent review approaching, please contact us.
