How Much Can a Landlord Increase Commercial Rent In the UK
Once you've signed a commercial lease and are ready to move into your business premises, it is easy to get comfortable with the idea of affordable and stable rent. What happens when that changes?
Long-term commercial leases are likely to be subject to rent reviews, during which your landlord may decide to change rent, possibly upwards. While landlords reserve the right to revise the rent, it can be hard for you to adapt to the rent increase.
Unfortunately, there is no one-size-fits-all approach for landlords to increase rent in the UK. Different landlords have varying reasons and justifications for rent reviews. This article explains the detailed and unspoken rules of commercial rent reviews in the UK and how to properly contest an impending rent rise without damaging your relationship with the landlord.
What is a Commercial Rent Review?
Your commercial lease is subject to a rent review—typically every 3-5 years. The landlord values the property and reviews the rent they charge you for it. The aim is to adjust the amount to align better with the current market conditions and the property's state.
However, most commercial leases stipulate that rent can strictly be adjusted upwards. A rent review can mean your rent increases or remains static, despite dwindling market prices.
How Does a Rent Review on a Commercial Lease Work?
Your landlord carries out the rent review through several methods. However, the process limited to your landlord is stipulated in the rent review clause of the commercial lease. Generally, your landlord is likely to review the rent in either of two ways:
- Based on open market rental value
- According to the Retail Prices Index (RPI). It measures average goods and services prices across the UK. Rent aligning with the RPI reflects general inflection levels instead of changes in the rental market.
Fortunately, while a commercial rent increase may sound like a terrible idea for you and your business, the good news is that you don't have to accept the proposed rent increase. Rent increases are subject to negotiations, debates, and reviews.
How to Negotiate a Commercial Rent Increase in the UK
Rent reviews tend to differ. Generally, a rent review negotiation is likely to follow this procedure:
- Your landlord sends a trigger notice.
- You and your advisor will respond to the increase with a counter-notice detailing your rejection of the proposed rent increase.
- The advisor negotiates with the landlord on your behalf. During this stage, a mutually agreeable rent is agreed upon by both parties.
- Failure to agree on the new rent, you can appoint a third party to solve the dispute.
DoNotPay is the perfect solution to solve any disputes between landlords and tenants.
DoNotPay Can Help You Solve a Commercial Rent Increase
DoNotPay allows you to fight back in case a landlord is trying to increase your rent unfairly. With DoNotPay, you don't have to do everything by yourself. If you want to question or complain about your landlord increasing your commercial rent, DoNotPay has got you sorted in a few simple steps.
- Search for and open the Landlord Protection product on DoNotPay.
- Select which issue applies to you.
- Answer a simple set of questions so our chatbot can collect the necessary information to create your demand letter.
- Choose whether you want DoNotPay to send the demand letter to your landlord or roommate on your behalf. If you already tried sending a demand letter and it didn't work, we can help you start the small claims court process.
Head over to DoNotPay, request a landlord protection service from your , and allow DoNotPay to handle the rest.
Why Use DoNotPay to Solve Your Landlord Tenancy Challenges
- Fast. DoNotPay handles your landlord-tenant disagreements in the shortest time possible.
- Easy. With DoNotPay, you don't have to handle the bulk of the work since DoNotPay does it on your behalf.
- Successful. DoNotPay makes a strong case on your behalf when solving your tenancy issues.
DoNotPay Provides Multiple Solutions to Landlord Tenant Challenges
DoNotPay provides all-around landlord protection services in the UK. As an effective and reliable digital lawyer, DoNotPay takes care of your best interests—whether as a landlord or tenant. Here are additional landlord protection services and solutions you can outsource from DoNotPay.
- How to kick out a roommate
- Solve a possible eviction threat by the landlord
- How to draft a tenant's notice to end tenancy letter
- How to get your security deposit back from your landlord
- How to handle a notice to end a tenancy in the UK
- Find out how much rent can a landlord in the UK raise rent yearly
- Discover and protect your tenant rights
- Find out how much notice your landlord should give you to vacate.
What Else Can DoNotPay Do?
DoNotPay provides broad coverage of services to solve many problems. Besides providing landlord protection, DoNotPay can also help you to:
- Sue in a small claims court
- Solve standardized legal document issues
- Notarize any documents
- Get help with the Freedom of Information Act
- Find unclaimed money.
Is your landlord planning to increase rent for the commercial property you rented? DoNotPay today to negotiate rent with your landlord effortlessly!