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Tel: 07933 114108

Email: barry@voyseyltd.com

licensed, leisure and retail property services

Rent Review

 

Generally speaking rent reviews come round on an infrequent basis, typically 5 year intervals.  They are an opportunity for the rent to be set at the current market level.  A too low or high rent review agreement may result in either lost income to a landlord or reduced tenant profits, therefore, it may be prudent to take advice from a surveyor with speciallist knowledge both of rent reviews and of the property type involved


I have extensive experience of conducting rent reviews in the licensed, leisure and retail sectors including public houses, restaurants, night clubs and hotels.  I am regularly instructed by both landlords and tenants to advise on rental values and undertake negotaitions.  Where the rent review cannot be agreed and is referred to a third party for decision I also act as Expert Witness providing the necessary representation to the tribunal.  I have extensive and wide ranging experience, am a Fellow of the Chartered Institute of Arbitrators and as member of the RICS Presidents panel of Arbitrators and Independent Experts also regularly receive appointments to determine rent reviews where others cannot agree.  Such knowledge and experience ensures your case will be handled with the utmost professionalism.


Issues to consider

  • In rent review valuation is a hypothetical one based upon the lease terms and might be completely devoid from the real world situation.  Do you understand the terms of the lease and how they may impact on the valuation?
  • The valuation should be supported by market evidence.  How do you apply the knowledge of other transactions to your review?
  • Rent reviews have historically been upwards only.  Is there an opportunity for downwards reviews, do you know what your lease says?  
  • Remember assuming a 5 year review pattern each £1,000 additional rent is £5,000 less profit to a tenant or £5,000 additional income to a landlord. Therefore the right result is essential, the wrong one may impact on either the value of your investment, the future profitability or saleability of your business!