| Full
Article:
Rent Reviews and mid-tenancy rent
increases fall into two broad
categories:
Rent reviews (rent increases) are
far more common with Commercial (business)
Tenancies
than they are with residential tenancies.
Residential
Tenancies tend to be
relatively short, often 6 months or 12 months
under an Assured Shorthold Tenancy, therefore there is
no need for a rent review.
On the other hand commercial
tenancies can be up to 25 years or so, though in recent
years the trend is for commercial leases to shorter -
15, 10, 5 or even 3 years now being common lease periods
on the high street.
There was a time when there was no
such thing as a rent review, however, the inflationary
periods of the latter half of the 20th century have
brought in this now common phenomenon.
Landlords cannot unilaterally
vary the terms of their lease or tenancy agreements,
therefore unless there is a clause in the lease which
allows for a rent review then the rent is fixed for the
period of the lease.
Most commercial tenancy leases now
have a rent review clause which allows for a rent
review at 3 or 5 year intervals depending on the
overall length of the lease agreement.
©
LandlordZONE 2006 |
