Ever heard of a rent review? Chances are the answer to that one is, yes, but not sure what it actually means. Well, anyone paying office rent London needs to sit up and listen. Reviewing rent is a perfectly legal and often successful way of ensuring that the money one is paying for a commercial property is fair. It can even be arbitrated – a practice developed to ensure that commercial landlords didn’t start levying ludicrous fees just because they could – which means that companies who have a genuine case for querying their rent could save thousands of pounds every year.
Saving money, or potentially saving money, through a rent review, is a very viable option for companies looking to economise; to cut their budget in line with current financial trends. Office rent London has always been notorious (as, indeed, has all rent in the nation’s capital) for being ludicrously overpriced. Back in the days of prosperity people didn’t seem to care too much. In fact, paying a good amount of rent was almost a badge of honour, because it reflected in some kind of perverse way on the amount of money one’s company was actually making. These days, though, with every penny in every pound wound tighter than a cat in a strange alley, huge rents are just millstones. Rent review can offer a quick, all parties’ amenable solution to the problem.
So how does it work? Anyone who pays office rent London can go to a firm like The Lorenz Consultancy, which makes a specialty of rent reviews. They will enter into negotiations on behalf of their client, once they have researched that client’s premises, and work out what its rent should be. That is all done according to a pretty vast background “scale” of industry knowledge – basically, a city wide awareness of what basic rent rates should be in relation to the profitability and location of a building or area. A rent review is conducted by comparing the property in question to comparable properties all over London: how expensive, or otherwise, should the area be, and what quality of building is under review?
According to the experts, the review, which takes into account the average office rent London at any given time, defines the detailed characteristics of the building against its location, comparable buildings throughout the city, and the actual terms of the lease. If the company conducting the review finds reasonable grounds for suggesting that the rent is too high, they will be able to negotiate either a rent reduction, or a suitable break in rent payment, which makes up the over payment that has been discovered.
While not every company will find that their premises is “entitled” to a rent review (i. e. that it is worth conducting one on the property in question), it’s always worth opening negotiations to find out. In the current financial climate, one’s office rent London can be nothing short of crippling: getting people like The Lorenz Consultancy to check out the background could result in serious fiscal benefits.