A combination of increased demand and diminishing supply has led to commercial property rent rises in many areas, Aitchison Raffety reports.
“In some ways tenants have had it good for a long time in so far as current rental levels are only now starting to exceed those reached in the late 1980s, and rents generally have remained remarkably stable for over twenty five years and reduced significantly in real terms when inflation is take into account,” says Group Director Mark Bunting (pictured above).
“Notwithstanding this, few occupiers will have factored rent increases into their budgets and accordingly such increases will come as a surprise. After such a long period of stagnation, landlords are understandably keen to increase rents.”
Mr Bunting continues to say that tenants are regularly asking Aitchison Raffety if there is anything they can do when faced with rent increases.
Most leases contain rent review clauses allowing rents to increase in line with market levels. However, these increases must be proven and the wording of the review clause is critical.
While increases may be justifiable in some cases they cannot simply be imposed at the whim of the landlord, Aitchison Raffety explains. Their advice to occupiers faced with increases, is to seek professional assistance as soon as possible.
If notice requirements are incorrectly dealt with it can lead to rent increases which may appear unreasonable being imposed, they warn.
There is a wealth of case law relating to this area, Aitchison Raffety explains, and a Chartered Surveyor familiar with this type of work will be able to ensure that rental increases are kept to the minimum possible level.
Aitchison Raffety is a leading practice of Chartered Surveyors and Town Planners with 17 regional offices across the UK, and anyone in need of further advice on rental matters is invited to contact their nearest branch.
Posted by Neil Bird
Photo by Aitchison Raffety
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