It is a myth that industrial rent reviews must take months to negotiate and agree. In theory a rent review can be agreed within days should a Landlord and Tenant be willing to negotiate and agree upon a revised rent however conversely, they can take many months or in extreme cases, years to settle.
The most efficient way for a Landlord or Tenant to force a rent review to be resolved is to apply to the RICS for the Appointment of a Third Party who will act either as an Independent Expert or Arbitrator.
The lease will direct whether it is to be an Independent Expert or Arbitrator or in some cases, the Landlords or Tenants can decide whichever they feel is most appropriate.
The distinction between the two may be of importance when deciding should a choice be allowed.
An Arbitrator will make his Award based solely upon the evidence included within the written Submissions whereas an Expert may be influenced by the Reports however he is free to also give his ‘expert’ opinion and take this into consideration when making his Determination.
There are various factors which must be taken into account before making an application to the RICS. The potential costs involved and the strength of your case are probably the two most important factors.
It is important to remember that an Arbitrators Award is final and extremely difficult to challenge. When making an application, one must be prepared to accept this and sometimes the gamble is worthwhile while at other times the results can be frustrating.
In many locations throughout the UK, Industrial rents have increased over recent years and the IP Consultancy strive to agree rent reviews via negotiation which is often the most harmonious method and best for the Landlord / Tenant relationship.
Should negotiations fail, then a Third Party application is often the only choice to progress a rent review which the IP Consultancy is happy to assist with. Whilst there are often substantial costs involved and no guaranteed results at Third Party, it is often the fastest way to ensure a fair result is swiftly agreed.
