no rhyme nor reason to the
Landlord's rent demands
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New lease rent negotiations
Where a new lease is being negotiated both parties are free to walk away from the situation; the landlord if he feels that the tenant and business owner won't be able to pay the rent, and the tenant if he feels that the landlord will be unfair in the way he deals with him, perhaps not carrying out repairs on neighbouring properties for example which in turn causes problems.
A situation that we have come across a few times is where there is a shared rear area of the property that is perhaps essential for storage of goods or access to get goods in and out and the landlord simply hasn't repaired it to a standard that the tenant and business owners feel acceptable.
The other thing that is completely negotiable at the start of a lease is the type of lease that it will be although generally today Full Repairing and Insuring Leases are the norm where the tenant and business only gets full use of the property providing they repair and insure it and pay the rent.
All of these things are negotiable at the start of a lease.
There are typical scenarios if we talk to a landlord that they complain about the tenant always having to be chased for the rent or not paying the rent at all and having to call the bailiffs in and equally the tenant and business owner will complain about the landlord never doing any work on the property or promoting the area and so on and so forth.
What does make things worse is that many times the thoughts and comments can be very personal and to some extent this is no longer a rent review but a personal matter in lots of ways.
What Chartered Surveyors do to help rent reviews
The benefit you will have from having a rent review carried out by an independent chartered surveyor such as ourselves is that they will not have any interest in the property or the landlord or the tenant other than resolving the rent review.
Chartered Surveyors will really read the lease
How are rent figures got to as there doesn't seem to be any rhyme or reason to the increase?
Calculating rents for shops
With shops this gets more specialist:
ITZA - in terms of Zone A's is a method whereby you look at the value of certain space and areas being worth more than other areas. There are many arguments as to how valid this is; nevertheless it is a general way of levelling the playing field when valuing a shop with a larger shop front and more value.
Where the rent is calculated on the turnover, which normally relates to the profit, although some businesses will argue that the profit margin is so low that there is very little profit available. Some businesses believe this is the fairest way when they are making a profit that the landlord is making more profit and incentivises everyone.
Rules on how to serve the notice
There are of course rules on how to serve the notice and right ways and wrong ways. You can get into technical legal arguments with regard to whether the notices have been served or not but we normally say to tenants and business owners where this is the case that sooner or later they will have to pay the rent so we need to look at this and look at how best to carry this work out. It can be used as an element in the poker playing game.
Paying backdated debt
What often happens in the time that is taken to negotiate a lease a back log of unpaid rent can occur, for example if a rent is due in one year and it takes two years to negotiate it then there is a backlog of rent which needs to be paid.
How to move forward with a rent review
We would recommend that you appoint an independent chartered surveyor to look at your various options and give you best business advice which our independent surveyors can provide. For further advice on rent reviews:
Free phone us today on 0800 298 5424