Rent is usually regarded as a key feature of a lease.

The rent is usually expressed as an annual sum, payable in advance. Most commercial leases specify that the rent should be paid in four installments, usually on the quarter days, being Christmas day, 25th March, 24th June, and the 29th September. It can be paid on a monthly basis also. There is no hard and fast rule.

Commercial leases can include a provision allowing the rent to change over time. This ensures that the landlord continues to receive a rent that reflexts the true value of the property. Even long leases, which are granted at a premium, usually provide for the rent to increase over time.

Rent Review

Rent reviews take place at intervals agreed in the lease. Their purpose is usually to adjust the rent to the current market level by the review date. Whether rents go down or up depends on the term of the lease. Some leases say that the rent will remain at the same level or increase, if market rents have increased, at the review date. This is often called an upward-only rent review. Some other leases allow the rent to go either up or down, depending on market rents at the times or in line with inflation.

Often, the first step in the review procedure occurs when the landlord gives the tenants written notice that the review is to be activated. A specific figure will be quoted for the new rent. If this does not seem reasonable, the lease may specify that a third party, suitably qualified to do so, can assist in determining the new rent.

There may be deadlines in the lease which, if the tenant misses them, means that the tenant has to pay what the landlord asks in the lease. The tenant should either try and agree a new rent with the landlord or get their solicitors to negotiate on their behalf. Above all, the tenant should not ignore the issue.

Professional advice from a solicitor will help you to understand the implications of the rent review clauses in your own lease. If you would like to discuss rent review with us please call 01562 514 870, email This e-mail address is being protected from spambots. You need JavaScript enabled to view it or contact us on the contacts page of our website.