Missed a rent review?

Don’t panic – It might not be all bad news

If a landlord misses the market rent review date, it may not be a major issue, particularly if the lease used is the standard ADLS commercial lease form.

Most ADLS leases allow the landlord to give notice of a rent increase up to three months after the review date. If done within that timeframe, the rent increase can be backdated to the rent review date.

However, if the notice is given more than three months after the review date, the increase cannot be backdated. Instead, the new rent will only apply from the date the notice is issued.

The three-month window is a critical timeframe, but note that it may vary depending on the lease form used. As always, check with your solicitor to confirm what applies in your situation.

Tenant’s Response

Once the rent increase notice is issued, the tenant usually has 20 working days to object. If they don’t, the rent is automatically adjusted to the new amount.

If they do object, the lease will outline the dispute resolution process, often arbitration or the appointment of valuers to set the rent.

Try to Be Proactive

It's in the landlord’s best interest to give written notice as early as possible, typically no earlier than three months before the rent review date.

And remember, if you do miss a review date, check with your solicitor. There may still be a way forward.

Want help navigating your next rent review? Get in touch here and let’s talk it through.