Business property rent review - any advice?

[warp9]

Hi. We took out a 10 year lease nearly 5 years ago and as such have now been contacted by the managing agent to enter into a dialogue to agree the new rent level.

I've never gone through this so have no idea how to play it. Any suggestions?
Thanks

[Rangeroverover]

DO NOT DO IT YOURSELF........hire a proffesional, worth it long term

[PurpleMoonlight]

You will likely end up reviewing to market rate.

Yes you can appoint a professional to negotiate for you and then you will likely end up at market rate plus a large bill.

[Mosdef]

OP, worth getting a professional in so you don't potentially get screwed over by a landlord who knows the process inside out and who presents irrelevant/overpriced evidence.

Personally, I wouldn't go to a big firm of surveyors and would go with a local specialist. Could be worth checking with neighbouring tenants as a starting point to see whether they have any recommendations.

[Chrisgr31]

Some information is missing to enable anyone to give any sensible advice. As some have said the rent review will almost certainly be to open market value, but the open market value will depend on the conditions set out in the lease. Are we talking about a lease with a 10 year year term and 5 year rent review or a 5 year lease, is the notional lease protected under the landlord and tenant act, what is the repair obligation, is there an ability to sublet, assign, can you take in to aco incentives (very unlikely!) etc. All these factors affect open market value.

What sort of property is it? Is it in a row of identical units? What sort of level is the rent? Have you spoken to your neighbours etc?

Whilst it is possible to negotiate your own rent are you better of concentrating on your day job leaving i to an expert? Whatever you do ensure that you speak to your neighbours. If I had a £1 for every tenant you had told me he had a special deal but it turned out to only be special for the landlord I would be very rich! Tenants need to liaise and work together to get the best deal.

Dont forget that just because you negotiate a discount on the original proposed rent that doesnt mean you have a good deal!

[surveyor]

PurpleMoonlight said:

You will likely end up reviewing to market rate.

Yes you can appoint a professional to negotiate for you and then you will likely end up at market rate plus a large bill.

Pray tell me about Market Rent oh font of knowledge?

I'd like it's definition please, and I'd like to know have Lease Terms, can affect the market rent - not affecting assumptions and disregards.

I'd also like to understand the third party requirements within the lease, and also the implications of which method is available.

I'm not sure if we know the category of property, so if you could give us a quick overview of all that would be helpful....

I'd also like to understand the mechanics of the review, so that I know it is legally due.....

OP - Market Rent is easily thrown out. Bit more to it than that though.

Speak to a local commercial Chartered Surveyor....

Some of the things I've seen....

Chris's 'Special Deal'.
Landlord (a council) trying to charge Rent on Authorised Tenants' improvements (a bloody great extension).
Missed deadlines (I was acting for Landlord. Tenant was a corporate (otherwise I would have felt guilty)) Cost the tenant a lot of money.

[Ken Sington]

Chrisgr31 said:

Whilst it is possible to negotiate your own rent are you better of concentrating on your day job leaving i to an expert? Whatever you do ensure that you speak to your neighbours. If I had a £1 for every tenant you had told me he had a special deal but it turned out to only be special for the landlord I would be very rich! Tenants need to liaise and work together to get the best deal.

"Yes, let's sit down over a coffee and chat this through. You don't need to use an agent. He'll only charge you money for something you can do yourself. Now, have I got a deal for you . . ."

Hashtagshafted