Factors such as inflation and fluctuations of the real estate market lead to changes in rent prices, usually upward only, which is why the landlord and the tenant have to meet at a mutually agreed upon date to renegotiate rent. This process is called rent review and both parties have their own financial motivation as in unfolds: on the one hand, landlords seek to increase rental income and property value and, on the other hand, tenants hope to minimise rent cost.
Depending on the provisions stipulated in the lease contract, the lease can go upwards or downwards but, because of inflation, most contracts have an upwards only cost. Nevertheless, tenants can still negotiate the amount by which the lease will increase, so knowledge of the current real estate market is essential.
Tenants can either negotiate the rent review individually or, if they want to make sure the amount is fair and reflects the value of the properly, they can hire a professional third party to negotiate on their behalf. In case they cannot reach an agreement, the law offers set dispute resolution processes and arbitrations systems and hiring a solicitor is required should it come to this. One of the parties can also choose to go to court to settle the matter, but, this being a long and costly process, it is in their interest to agree on a rate.
Documentation is an important part of rent reviews, so both tenants and landlords are advised to keep copies of the lease, licenses and all the other documents associated with it.