It’s Valentine’s Day and some of you may have received a note from your landlord in the form of a rent notice. Dont panic, we can help, Olawill can support you through the entire rent review process including:
✅️ Providing a detailed rent review report which includes a market rent valuation of your commercial property and recommendations on what rental level to agree to.
✅️ Representing, negotiating, and settling the rent review with your landlord quickly and efficiently, saving you money and time in the process.
However, today, our Valentine’s gift to you is sharing some principles we apply when dealing with rent reviews:
1️⃣ Don’t accept the first offer – there’s no secret that rent notices with rental proposals are sent with some margin, usually 10-15% higher or sometimes much higher like 100% than where the landlord believes the actual market rent is. Agreeing to the first offer can cost you money and your neighbors when it comes to their turn to settle reviews.
2️⃣ Valuation is essential to understand market rent – the valuation element concerns the open market rent which takes market transactions from neighboring properties and adjusts them for your subject property to arrive at a market rent with some certainty. The best valuations take into consideration the motives behind the transactions and contextual information to exclude outliers and irrelevant information that can skew results, but you can’t always be too sure the landlord’s representative is taking the time to make absolutely certain.
3️⃣ Get everything in writing and documented – In the process of negotiating, it is important to get everything documented via emails/letters and eventually a memorandum just in case matters get forgotten due to a change of landlord representation.
All communication from landlord’s agents will usually be sent with the phrases “without prejudice” or subject to contract, this allows them to withdraw their proposal in the event of a dispute involving arbitration. So it’s important to ensure when agreement is made, this is formally agreed with a rent review memorandum.
There are many more matters to be considered, but if you received a late Valentine’s card from your landlord in the form of a rent review notice, we offer free consultations to review your rent review notice and strategise a favourable outcome for your property.
But act fast before your negotiation window closes! Email sales@olawill.co.uk or call 079 60313 844 to schedule.