I have a tenant on a lease with a five year term on a commercial property. The lease specified a rent review after 2,3 and 4 years. The lease also specified that the rent review should be determined by the RPI index and it specifies the mechanism for doing this. I duly calculated the rent review on the second anniversary and then sent the tenant a letter specifying the increase which amounted to about 6% as it calculates it against the base month which was effectively at the start of the lease. So essentially it is 3% for each year passed. The tenant responded to me and told me I had no right and should not conduct a unilateral rent review.
He has said that I have to employ an impartial rics surveyor to determine the rent review. However, that is not my understanding. I have consulted the firm of solicitors that drew up the lease(waiting for reply) but would appreciate any expert view from forum members. In the lease there is mention of what should be done in terms of a rent review dispute. However, I can’t see this applies in this case as I have applied exactly the terms of the rent review and calculated it correctly and communicated it to the tenant as specified. Surely if they signed the lease agreeing to the rent review periods and for these to be calculated against rpi and of this has been actioned correctly they don’t have a leg to stand on? Thoughts?
He has said that I have to employ an impartial rics surveyor to determine the rent review. However, that is not my understanding. I have consulted the firm of solicitors that drew up the lease(waiting for reply) but would appreciate any expert view from forum members. In the lease there is mention of what should be done in terms of a rent review dispute. However, I can’t see this applies in this case as I have applied exactly the terms of the rent review and calculated it correctly and communicated it to the tenant as specified. Surely if they signed the lease agreeing to the rent review periods and for these to be calculated against rpi and of this has been actioned correctly they don’t have a leg to stand on? Thoughts?
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