What is a penultimate day rent review?

Further, a lease will often provide for a penultimate day review. Where the tenant is holding over, at the end of the fixed term, the landlord can benefit from increased rents. Therefore, timing provisions within the lease can affect both the landlord and the tenant significantly.

How often is a rent review?

Typically, rent reviews occur every three to five years. For short-term leases, there may be no rent review.

What are the different types of rent review?

There are various types of rent review: fixed increases, percentage uplifts, formulaic reviews such as inflation-adjusted index-linked, ground rent reviews geared to open market rent, turnover rent review comprising a base figure plus a percentage of the turnover of the tenant’s business, and open market reviews where …

Can you backdate a rent review?

The leases generally then state that review can then be undertaken at any point in the future and, once the review has taken place, the landlord will be entitled to backdate the increased rent to the review date and charge interest.

Can a landlord request a penultimate day review?

Further, a lease will often provide for a penultimate day review. Where the tenant is holding over, at the end of the fixed term, the landlord can benefit from increased rents. Therefore, timing provisions within the lease can affect both the landlord and the tenant significantly.

Can a lease be served on the penultimate day of the term?

Unless either a Section 25 Notice or a Section 26 Notice has been served, as referred to below, the answer to this is generally no, except in the few cases where leases are drafted to provide a rent review on the penultimate day of the term (this is very unpopular with tenants and is likely to be strongly resisted).

When does a landlord need to do a rent review?

As such, a lease will often specify that rent reviews will take place on every third or fifth anniversary of the commencement of the lease. In addition, a landlord will often seek to set a rent review for the penultimate day of the lease term (especially if the lease is one that will give a tenant security of tenure).

What is a fixed term notice of rent increase?

Fixed Term Tenancy Notice of Rent Increase Form –In a fixed term tenancy, the tenant will be required to remain in the lease contractfor a specified amount of time as agreed and mandated by the landlord. For this type of tenancy or lease, the landlord will need to use a fixed term tenancy notice of rent increase form for his tenants.