9:08am Monday 3rd June 2013
By Darren Slade
LANDLORDS who forget to carry out a rent review on the agreed date could trigger one years later, says Dorset estate agency Goadsby.
The fact that a review date has passed with no-one taking action does not mean the rent will stay the same until the next review date or the end of the term.
Marcus Andrews of Goadsby said: “Normally, time is not of the essence in terms of rent reviews. So even if a rent review date is passed, the landlord may well succeed in triggering a late rent review.”
In one recent case, a landlord was over 12 years late in implementing a rent review. Landlords who forgot a review that was due before the recession could trigger one now. And “upward only” review clauses could mean the tenant having to pay all the back rent plus interest as well as the increased rent for the rest of the lease.
Mr Andrews advises tenants to be aware of any rent review dates in their leases and to check old rent review memoranda before taking over an existing lease.
If a review is outstanding and the tenant wants it carried out without further delay, they could consider serving a notice on the landlord requiring them to conclude the review.
If a review has been settled and the outcome is no increase, the tenant should ensure there is a rent review memorandum so there is no room for argument in the future. It is unwise for the tenant to leave an outstanding rent review open as the landlord could activate or continue a rent review in the future.
Mr Andrews said: “From a landlord’s point you should not assume that just because a rent review date has gone by without the rent being reviewed, the opportunity to increase the rent has been lost.”
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