Suppose you live or operate a business from a rented or leased property. In that case, the rental or lease contract could contain a rent review clause that allows the landlord or property manager to adjust the rent after a specified period. Given that rental and lease costs increase over the years, there is a probability that your landlord will raise your rent or lease charges. In some cases, you might feel that the increment is unfair but do not wish to vacate the property. So, how do you go about this?
Rent review services are consultants that help tenants and landlords who have reached a rent-review stalemate. Typically, they act as arbitrators or mediators who help both parties reach a solution. If you wish to hire these consultants, read the extract below to understand how they work.
When Should You Hire a Rent Review Service?
Rent review services could be hired when you anticipate a rent review or reach a rent review impasse. Typically, the benefit of the professionals is that they ensure fairness in the rent review process. For example, they ensure the property owner does not disregard the lease or rental contract by initiating a rent review earlier than agreed. Besides, they inform the tenant about their rights during the rent review process. For instance, they have a right to ask the landlord to justify their review.
What Happens After Hiring a Rent Review Service?
Once you hire the service provider, they examine the lease or rental contract to establish its provisions. Besides, they assess the current rent or lease charges against the current market rates, real estate trends, property occupancy, the amenities on the property and future market influences. For instance, an upcoming development such as a road or commercial property could increase the demand for property in the area, pushing the rental charges upward. This investigation allows them to determine a fair rent or lease charge. After this, the consultant listens to the arguments of both parties and makes a decision based on their understanding of the issue. For instance, an anchor tenant in a recession could argue that a rent review is unfair since it strains their business, and the closure of their business could affect other establishments on the premises. If this is the case, the consultant could advise the landlord to push the rent review clause to a later date.
How Do You Choose a Rent Review Service?
Your immediate concern when choosing a review service is its credibility. Typically, the consultant must be non-partisan when examining the issue. Moreover, they should have an accurate understanding of the current property market. Finally, ensure the consultant is reasonably priced.Share