Agreeing on a rent is one of the most important things that you can do in any lease arrangement, but even if you do agree on a set price, from time to time, due either to market conditions or the needs of the landlord, there may be opportunities to change the level of rent that you are charging.
Performing a rent review is not always an easy task, but it is a necessary one and this is usually performed on an annual basis or at set intervals in the lease. .
What do I need to take into consideration?
If you have decided that a rent review is on the cards, then there are a number of elements that you need to take into consideration. Some considerations that you might look at include:
- How much: How much are you going to increase the rent? In some situations, you might find that there is a standard amount of increase. You could look factors such as inflation, market conditions or local circumstances. There are also many rules guarding the maximum amount of rental increase that you can make and indeed, the complexities of the lease agreement may prescribe review terms
- Terms of the Lease: Do you want to change any of the terms of the lease? Perhaps you would like to alter the furniture arrangement of the property or the terms of the current lease?
- Length of the lease: Do you want to lock your tenants into another 12-month contract or are you looking for a shorter-term lease?
How can I approach the topic of a rent review?
If you are concerned about missing the opportunity to adjust rents or fear a review could go against you and you aren’t sure where to start, then taking on board the advice of an expert can help, and Roger Hannah & Co. can provide you with any information you need in regards to performing a rent review.
To find out more about how we can help you, contact our Lease Advisory Team at Roger Hannah & Co. today on 0161 817 3399 or visit our Lease Advisory Page.