What is a rent review clause?
A A rent review clause is a provision of a lease that takes effect periodically (normally every 3/5 years) by adjusting rental to a fair figure that takes into account inflation and market strength. Tenants can expect their rent to increase in a booming market. In a down turned market a tenant’s rent could be reduced. However, it is normal for a landlord to insist that the revised rent be the greater of the market rent or the rent paid prior to review. This kind of provision is normally referred to as an “upwards only” rent review clause as it ensures the rent will either remain constant or go up, but never down.
