Rodger Vickers
Partner, Brownill Vickers & Platts
Rent reviews maintain the status quo as to the rent payable to the landlord for the usage of his property part way through the life of a licensed property lease. The lease itself documents how to resolve, when the time comes, the reviewed rental figure. Why then are many pub lessees left dissatisfied when the sun sets on their rent review negotiations?
It pays the lessee to plan his campaign of action at an early stage. He will know when a rent review is due and can anticipate contact from his landlords by way of a suggested figure or a rent notice. The problem usually arises if the parties fail to agree at this point. A lot of lessees simply
bury their heads in the sand and this represents a grave mistake.
Most pub companies either employ or can call upon experienced chartered surveyors for advice or to take over the rent review process for them, and there is the need for the lessee to ensure at this point the dispute is placed on a level playing field by way of appointing an experienced surveyor to represent his own interests.
Although most lessees are used to dealing with solicitors, accountants and stocktakers there is a surprising reluctance to appoint a suitably-qualified surveyor to look after them in the rent-review process.
This can result in the lessee paying too much rent on a year-by-year basis or, arguably worse than this, finding that the review dispute has been referred to arbitration under the terms of the lease, leaving him as the loser with substantial costs awarded against him.
The lessee's surveyor will discuss the case with his client, will negotiate with the landlord's representative and can sometimes, should agreement not be reached at this juncture, persuade the landlord to embark upon a less expensive form of dispute resolution. If the surveyor you appoint is also an arbitrator so much the better. He will have his own presence in terms of experience of settling similar disputes and will be ideally placed in terms of preparing submissions on your behalf.