How to Trigger a Rent Review
Understanding how to trigger a rent review is essential for both the landlord and tenant in the rent review process. Below, we outline the key steps and considerations involved in triggering a rent review for commercial property in Ireland.
- Check the Lease
The first step in triggering a rent review is to carefully review the lease. Most commercial leases include a rent review clause, which outlines the frequency and process for reviewing the rent. The clause will specify the method of review and any specific assumptions & disregards to consider during the rent review process. In the majority of leases, it will specify whether the rent review is to be initiated by the landlord and/or the tenant.
- Know the Timing and Notice Requirements
The lease will specify the exact date(s) when a rent review can occur, together with a timeframe for when the review can be triggered. This is often a number of months before the review date. Make sure to check the lease for the exact timeframe and method of giving notice.
- Notify the Other Party
Once the trigger date or rent review date approaches, the next step is to notify the other party (landlord or tenant) of the intention to trigger the rent review. The rent review notice should be in writing. Failure to give proper notice may result in the rent review being delayed.
Conclusion
Triggering a rent review is a straightforward process, but it requires careful attention to the lease terms, timing, and methods of review. By following the appropriate steps and engaging in clear communication, landlords and tenants can ensure that the rent review process is fair. It is important for both a landlord and a tenant to understand how to trigger a rent review.
If you would like assistance with your upcoming rent review, please contact us.
