{"id":180819,"date":"2023-05-10T06:27:55","date_gmt":"2023-05-10T05:27:55","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=180819"},"modified":"2026-03-30T01:13:10","modified_gmt":"2026-03-30T00:13:10","slug":"commercial-rent-review-process","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/commercial-lease-property\/commercial-rent-review-process\/","title":{"rendered":"I Am a UK Landlord. What is the Commercial Rent Review Process?\u00a0"},"content":{"rendered":"\n<p>As a commercial landlord, reviewing the rent you charge your tenants is an important part of managing your property, but the process must be followed correctly to be enforceable. Understanding each step of a rent review helps you avoid disputes and ensures your lease remains commercially viable. This article will explain what the standard rent review process is.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Rent Review&nbsp; &nbsp;<\/h2>\n\n\n\n<p>A rent review is when you, as a commercial landlord, check that the rent you charge <a href=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/3-key-points-commercial-lease\/\">your commercial tenants<\/a> is correct for your property value. This might mean increasing or decreasing the rent over time. If you do not want it to decrease, consider providing an \u2018upwards only\u2019 review, which protects you as a commercial landlord.\u00a0<\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>Your lease agreement should contain a rent review clause detailing when to carry it out. Typically, you will conduct a rent review every three to five years of the tenancy.<\/p>\n<\/div>\n\n\n\n<p>Commercial landlords will usually base a rent review with tenants in commercial property on a specific assessment such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>a periodic assessment in line with the <a href=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/retail-price-index\/\">Retail Price Index<\/a>;<\/li>\n\n\n\n<li>one in line with turnover; or<\/li>\n\n\n\n<li>an open-market assessment.<\/li>\n<\/ul>\n\n\n\n<p>Therefore, the<a target=\"_blank\" href=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/commercial-rent-review\/\" rel=\"noreferrer noopener\">&nbsp;commercial rent review process<\/a>&nbsp;largely depends on what type of assessment your commercial rent review contains.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Does the Process Include?<\/h2>\n\n\n\n<p>The commercial rent review process depends partly on what type of assessment you use as a landlord. We explain the typical steps of the rent review procedure below.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Notification<\/h3>\n\n\n\n<p>The first step in the process of any rent review will be for the landlord to give your commercial tenants notice of the rent review that will take place. It is best practice to provide your tenant ample notice. Usually, this is three months before the review takes place and in line with what your lease says.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Rent Review Assessment<\/h3>\n\n\n\n<p>As part of the rent review process, you must assess the current rent amount. Assessment will depend on which type of rent review assessment you carry out. For example, if you carry out an open-market evaluation, you will analyse the market with a focus on priorities which:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>are in the same area as your commercial property;<\/li>\n\n\n\n<li>are in a similar condition to your tenant\u2019s business premises;<\/li>\n\n\n\n<li>offer similar features to those your commercial lease provides; and<\/li>\n\n\n\n<li>are similar size to the commercial property.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">3. Serve Notice<\/h3>\n\n\n\n<p>Once you have made the rent review assessment and decided that your commercial tenant\u2019s rent amount will increase, you must notify them. This should include a written notice and must state what the new rent is. Your <a href=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/key-terms-commercial-lease\/\">lease agreement<\/a> will contain the details of your notice requirements for a rent review which should include where you must serve the notice for it to be lawful.<\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>Your tenant may wish to challenge the market assessment under the rules in the lease. This may involve them servicing you with a counter notice letter, typically within 28 days after they receive your notice.<\/p>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\">4. Agree On New Rent<\/h3>\n\n\n\n<p>If your commercial tenant serves a counter notice, you must allow time to both agree to the new rent amount. Again, your lease agreement should detail what the period is.&nbsp;<\/p>\n\n\n\n<p>If you cannot agree on a new rent amount, the lease will detail the next step in the process. Usually, this will be to appoint an arbitrator who is a professional surveyor. Their role in the process is to decide on what the rent amount should be due to your rent review.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Documentation<\/h3>\n\n\n\n<p>When you carry out the rent review process, it is in your interest to ensure you document where appropriate. This should include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>the dates of the rent review;<\/li>\n\n\n\n<li>the new rent level agreed upon; and<\/li>\n\n\n\n<li>when the new rent will apply.<\/li>\n<\/ul>\n\n\n\n<p>Please ask your commercial property solicitors to draft you a short rent review memorandum to record these points and for you and your commercial tenants to sign it. You should do this even if a rent increase does not arise after the rent review. This is because it records that the rent review process took place.&nbsp;&nbsp;<\/p>\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2023\/05\/04050959\/LegalVision-Landlords-Cheatsheet-for-UK-Leasing-Terms.jpg\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">Cheatsheet for UK Leasing Terms<\/div>\n            <div class=\"body-text\">\n                <p>This cheatsheet includes practical tips to understand key clauses and avoid disputes in leasing agreements.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.uk\/cheatsheet-uk-leasing-terms.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p><strong>Key Statistics<\/strong><\/p>\n<ol>\n<li><strong>\u00a33.8 billion:<\/strong> The estimated annual value of rent increases resulting from commercial rent reviews in the UK in 2023, with retail and office properties accounting for 67% of total review activity.<\/li>\n<li><strong>18 months:<\/strong> The average time taken to resolve disputed rent reviews through arbitration or expert determination in 2023-2024, costing landlords and tenants an average of \u00a342,000 in professional fees per dispute.<\/li>\n<li><strong>73%:<\/strong> Of commercial lease rent reviews in the UK are based on open market valuations, with &#8216;upwards only&#8217; review clauses present in 84% of leases over 10 years, protecting landlords from rental decreases.<\/li>\n<\/ol>\n<p><strong>Sources:<\/strong><\/p>\n<!-- wp:paragraph {\"fontSize\":\"small\"} -->\n<ol>\n<li>Royal Institution of Chartered Surveyors (RICS), <em>UK Commercial Property Rent Review Report<\/em>, 2023.<\/li>\n<li>Centre for Effective Dispute Resolution (CEDR) and RICS, <em>Commercial Property Dispute Resolution Survey<\/em>, 2024.<\/li>\n<li>British Property Federation, <em>Commercial Lease Terms Analysis<\/em>, 2024; and Savills Research, <em>UK Commercial Property Market Report<\/em>, 2023.<\/li>\n<\/ol>\n<\/div>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n    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This allows you to assess if the level of rent they pay is correct. However, your lease should detail the rent review process which you must follow. Some steps may include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>notifying your tenants that you will carry out a rent review;<\/li>\n\n\n\n<li>documenting the rent review process; and&nbsp;<\/li>\n\n\n\n<li>including a rent review memorandum which you will both sign.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>If you do not agree to rent after giving your tenants notice of any rise, you may need to involve an arbitrator.<\/p>\n\n\n\n<p>If you need assistance understanding the rent review process in the UK, LegalVision provides ongoing legal support for all businesses through our fixed-fee legal membership. Our experienced <a href=\"https:\/\/legalvision.co.uk\/leasing-lawyers-lp\/\">leasing lawyers<\/a> help businesses manage contracts, employment law, disputes, intellectual property, and more, with unlimited access to specialist lawyers for a fixed monthly fee.\u00a0To learn more about LegalVision\u2019s legal membership, call <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or\u00a0<a href=\"https:\/\/legalvision.co.uk\/membership\/\" target=\"_blank\" rel=\"noreferrer noopener\">visit our membership page<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1683696177585\"><strong class=\"schema-faq-question\"><strong>What is a rent review?<\/strong><\/strong> <p class=\"schema-faq-answer\">A rent review is where you, as a commercial landlord, assess the level of rent your commercial tenants pay you for the business premises you lease them, and it often increases their rental payments.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1683696184748\"><strong class=\"schema-faq-question\"><strong>What is the rent review process?\u00a0<\/strong><\/strong> <p class=\"schema-faq-answer\">The rent review process is the process you take to conduct a rent review. This might include notification of a review, notice of a rent increase and the assessment of the rent level.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1774829344688\"><strong class=\"schema-faq-question\">What happens if a landlord and tenant cannot agree on a new rent amount?<\/strong> <p class=\"schema-faq-answer\">If parties cannot agree, the lease will typically require appointing a professional surveyor as arbitrator. Their role is to independently determine the appropriate rent amount following the review.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1774829359475\"><strong class=\"schema-faq-question\">Why should landlords document a rent review even when rent does not increase?<\/strong> <p class=\"schema-faq-answer\">A rent review memorandum, signed by both parties, records that the review process took place. This protects landlords by creating a clear record of dates, agreed rent levels, and when any changes apply.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/180819\" \/>            <input value=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/commercial-rent-review-process\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"I Am a UK Landlord. What is the Commercial Rent Review Process?\u00a0\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>As a commercial landlord, reviewing the rent you charge your tenants is an important part of managing your property, but the process must be followed correctly to be enforceable. Understanding each step of a rent review helps you avoid disputes and ensures your lease remains commercially viable. This article will explain what the standard rent<a href=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/commercial-rent-review-process\/\">Continue reading <span class=\"sr-only\">&#8220;I Am a UK Landlord. 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