A commercial lease is where a landlord grants a business owner, as their tenant, the right to sole occupation of their commercial property for their business premises. The tenant pays rent to the commercial landlord in return. A lease agreement contains many different terms and clauses regarding rent. It is a legally binding contract between a landlord and tenant, so both parties must adhere to this. One such provision is a stepped rent review clause that seeks to review rent periodically, and this article aims to help you understand these types of clauses.<\/p>\n\n\n\n
A rent review clause in a commercial lease<\/a> is a provision in the lease agreement that covers the rent a tenant pays. It allows a commercial landlord to periodically review how much rent they charge their tenant intending to raise this. The longer a lease, the more likely it will contain a rent review clause. A rent review will typically occur every three or five years, and the lease agreement will specify the exact time.<\/p>\n\n\n\n When a rent review<\/a> occurs, the rental amount will stay the same or rise. There are various methods by which a landlord can review the rent.\u00a0These differ in terms of the technique they use to assess the rent level. Rent review methods include:<\/p>\n\n\n\n A rent review clause will specify the steps to take regarding the rent review.\u00a0This includes how the commercial tenant appeals a decision they disagree with.<\/p>\n\n\n\n A stepped rent review is very different from other rent review methods.\u00a0It reviews the rent based on an agreement between the commercial landlord and tenant as they enter the lease.\u00a0This details an agreed fixed amount that the rent can increase at specific times agreed upon by both parties.\u00a0It is, therefore, not strictly a review of the rent but more an approved anticipated rent increase at particular intervals.\u00a0<\/p>\n\n\n\n For example, a landlord and tenant may agree that the rent will increase by \u00a3500 each year.<\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n\n
Stepped Rent Review <\/h2>\n\n\n\n