Understanding Rent Reviews: Protecting Your Business from Unfair Increases
What is a Rent Review?
A rent review is a process where the landlord can adjust the rent, usually to reflect current market value.
Most commercial leases longer than three to five years will include a rent review clause.
Key features typically include:
- Set review dates (e.g., every 3 or 5 years)
- Rules around how the new rent is calculated
- Whether rent can only go up (an ‘upward-only’ review)
- The option to negotiate, or if necessary, go to arbitration
Different Types of Rent Review Clauses
Not all rent reviews work the same way.
Common methods include:
- Open Market Rent Review: Rent is reset based on current market conditions for similar properties.
- Indexed Rent Review: Rent increases according to an inflation index like RPI.
- Fixed Increase: The rent rises by a pre-agreed amount or percentage.
Open market reviews are the most common but they also create the most room for negotiation.
Common Pitfalls for Tenants
Without advice, tenants often make mistakes such as:
- Failing to check how rent will be assessed
- Missing critical deadlines for challenging a proposed increase
- Accepting landlord proposals without verifying the market evidence
- Forgetting that review clauses often favour the landlord
A poorly managed rent review can mean paying well above the going rate.
How to Prepare for a Rent Review
Our advice for Nottingham tenants:
- Check your lease early: Understand when the review is due and what the rules are.
- Gather evidence: Comparable rents for similar properties in your area.
- Get professional advice: A chartered surveyor can value your premises properly and negotiate on your behalf.
- Don’t be afraid to challenge: You have the right to negotiate or refer to arbitration if necessary.
Expert Rent Review Advice for Nottingham Businesses
At Bramble & Wagg, we help tenants:
- Analyse lease clauses and market conditions
- Prepare strong counter-proposals to landlords
- Negotiate fair settlements
- Avoid costly disputes
Our tenant-first approach ensures you’re not caught out by unfair increases — and your business stays protected for the long term.
Facing a rent review?
Get ahead of the game.
Speak to Bramble & Wagg’s lease advisory experts today and secure your position before it’s too late.
