This article has been prepared in the light of the COVID-19 outbreak. It has been prepared to help micro and small businesses. The retail, leisure and hospitality industries have been particularly badly affected. If you rent your premises from a landlord, and your business has been affected by the COVID-19 outbreak, or you are concerned that it will be, then: – A rent review is a mechanism in your lease where you and the landlord agree or fix a new rent.
Usually this is based on the current market rent. Rent reviews are never popular with tenants and during the current crisis that is more true than ever. Many landlords are being asked to suspend rent reviews during the current outbreak. Most rent reviews are “upwards only” meaning that if the market rent has gone down, the rent will stay the same.
Most rent reviews work like this:
The lease will say that someone (usually the landlord) has to serve written notice by letter to start the rent review. That “rent review notice” will generally say what the new rent is that the landlord wants. You as the tenant will probably have to serve a “counter notice” letter within a set period of time. That is often twenty-eight days. It depends what your lease says. If you miss the deadline, then often the lease will say that you have lost by default and are stuck with the rent the landlord put in their notice. Do watch out during the current outbreak that you don’t miss a notice. Check where notices are meant to be sent, and try to get them redirected to you if you are not going to be there. The lease will say where the landlord should serve notices, so check it. Most leases usually say that if the notice is sent to the property, then that is good enough. It will be legally “deemed” served whether you actually receive or read it or not. So, if you can’t be in the property because of the outbreak, let the landlord know where you are. Tell them that is where notices should be served for the time being. The law isn’t completely clear what will happen in this unprecedented situation, but do your best! Once rent review notices are served, the lease will usually provide for a period of time to try to agree a new rent. If it can’t be agreed in that time, there will usually be a procedure for an arbitrator to be appointed. The arbitrator is a highly qualified professional valuer, usually a surveyor. It will be up to him or her to decide what the new rent is. But remember that they will be guided by the evidence that you and the landlord give them. If and when the rent review starts, consider getting professional advice from a surveyor to help put your case to the landlord and the arbitrator. The landlord will almost certainly get a surveyor to put their case forward. If you don’t put your own case forward, then you are likely to suffer. You may have options to terminate the lease or start a lease renewal process. That may allow you to have a new rent fixed by a Court or Tribunal. There are different rules in that situation so you may be able to get a rent reduction. These options are worth considering with a professional advisor, especially if market rents do go down.
This factsheet is for general guidance only and should not be relied on as specific legal or professional advice. If in any doubt you should always seek your own independent legal or other professional advice. The situation is constantly changing. You should continue to seek information from the Government and from the GLA.
What is a cap and collar rent review?
Collar and cap is a commonly-used mechanism to set a maximum and minimum increase on each review. So, for example, a collar of 2% and a cap of 5% ensures that the rent will always increase between 2% and 5% per annum on each review, even if the index has increased by more or less than those figures.
What is cap and collar?
An agreement in which a financial organization puts an upper (= the cap) and a lower (= the collar) limit on an interest rate for a loan, a share price, etc. : When interest rates are expected to rise, a cap and collar mortgage becomes more attractive to borrowers.
What is the RPI rent review?
Indexed rent review clause based on RPI | Practical Law A clause providing for annual changes to the rent payable under a lease. The clause is drafted on the basis that the rent will change based on the Retail Prices Index, although a different index can be specified.
- The standard clause is drafted to fit into standard document commercial leases offered by Practical Law Property but can also be adapted for use in other leases.
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: Indexed rent review clause based on RPI | Practical Law
What does caps stand for in apartments?
The Certified Apartment Portfolio Supervisor (CAPS) program teaches the critical proper ty management principles and techniques used by a professional supervisor. Designed for the multi-site and regional level supervisor, this course will help you make the connection between knowledge and driving performance to get results!
What are the 3 types of collars?
There are several types of collars. The three basic types are flat, standing, and rolled.
Why is it called collar?
Etymology – From Middle English coler, borrowed from Old French coler (Modern French collier ), from Late Latin collāre, from Latin collāris, from collum ( ” neck ” ), Cognate with Gothic ???? ( hals, ” neck ” ), Old English heals ( ” neck ” ), Compare Spanish cuello ( ” neck ” ), More at halse,
What is a Chelsea collar?
Home / Collar / Chelsea collar € 4,00
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Chelsea collar quantity
// A4 PDF Sewing pattern for the CHELSEA collar // The CHELSEA collar is a classic collar with pointed flaps and a round shape in the back. It fits PUFF AND PENCIL dresses and blouses with a V-neck and is sewn in a ‘sandwich’ between facing and neckline.
Why are landlords selling up UK?
The shifting property market – Finally, shifting market conditions have also contributed to the trend of landlords selling their properties. Property prices have been increasing in recent years, with many landlords selling their properties in order to take advantage of these high prices.