The Rent

In negotiating, the rent obligations imposed on the Tenant need to be taken into account. A Lease which imposes onerous obligations should attract a lower rent than a Lease that does not.


Potential Tenants should consider taking the advice of local agents to ensure that they are not paying over the current market rate.

It needs to be considered whether it is appropriate to proceed on the basis of snaggered rent increases of agreed amounts each year up to the first rent review date or the end of the Lease (as appropriate).  This may be desirable for the Tenant whilst building up his business and may help with the Tenant’s cash-flow in the short term, when trade may need to be established.

When negotiating a rent, it does also need to be appreciated that although an acceptable rent may be agreed to start with consideration does need to be given to the proper market rent, given that the rent may otherwise on rent review increase to an amount beyond what the potential tenant can properly afford.



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