ADB | RENT REVIEWS |
Under the terms of most leases tenants are required to obtain landlord’s consent before making improvements and where these
are unauthorised there
opportunity for the landlord incorporate these improvements review. This is a notorious area disagreement and it is important
to at of to
otherwise by way of an obligation contained within the lease or under the terms of the original letting.
Another modern disrepair
that is the responsibility
as it is tenant
typically assumed that
is unusual for there to be an assumption that the landlord has complied with its repairing obligations and in circumstances where the landlord has a significant repairing responsibility, usually a multi-let office building, a
provide good quality services affect the rental value.
basis of review and rent review assumptions
The lease will specify the notional
terms of the tenancy purpose of the review.
Most standard form of wording in leases specifies the review to open market rental value assuming that the property is available to be let in the open market. A number of points are typically disregarded,
a: 24 Old Burlington Street, Mayfair, London, W1S 3AW
such as the tenant’s occupation,
terms of the lease on which the property is let such as the length of the term, the existence of any break clauses and any other key points.
the notional term of the tenancy is particularly important. Certain aspects of these terms frequently provide the tenant with an opportunity to negotiate a reduced
be studied and
understood carefully against the context of the prevailing market.
One of the more complex topics to address in terms of comparable evidence in the rent review process is considering the impact of a rent free period granted on new lettings when seeking comparables. The majority of new lettings incorporate rent free periods sometimes to assist during
after the new lease commences
the original lease
market difficult substantially
periods are often granted as a pure letting incentive for the tenant to take the premises.
This gives rise to much debate in many rent reviews whether one should discount any headline rent achieved by apportioning the rent
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