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Rent Reviews and Rating Assessments
2. Negotiating a Market Rent
At a rent review your landlord will want to increase the rent. Strengthen your position by gathering evidence to show that the proposed rent is too high.
2.1 Collect information on the rents charged for similar premises in the area.
- Ask fellow tenants what they are paying.
- Commercial estate agents can provide details of properties to let.
- Obtaining details of the rents that have actually been agreed is more difficult. You may be able to reach an agreement to swap information with the tenants.
2.2 Form your own estimate of the open market value of your premises.
- When analysing the rent of other premises, make any necessary adjustments for incentives (or premiums).
2.3 Try to reach a settlement with your landlord at this stage.
- If local rent levels are collapsing, consider proceeding more slowly. But observe any time limits set out in the lease.
- If you are in shared premises, consider negotiating jointly with other tenants.
2.4 If appropriate, negotiate better terms in your lease as part of your rent review.
Labels: Premises, Reduce Costs
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