The 7 Most Common Mistakes in Commercial Rent Reviews, And How to Avoid Them

Rent reviews can significantly impact both a landlord’s investment return and a tenant’s operating costs. Yet despite how important they are, rent reviews are often handled reactively, rushed, or based on assumptions rather than evidence.

At Olden Property, we frequently see the same avoidable mistakes repeated across shops, offices, industrial units and leisure premises. Understanding these pitfalls and how to steer clear of them,  can make a substantial financial difference.

Below, we outline the seven most common rent review errors and what landlords and tenants should be doing instead.

1. Leaving the Rent Review Too Late

Many parties start reviewing the rent only when the review date appears on the horizon. By this stage, key opportunities to prepare evidence have already been lost.

Why this matters:
Comparable evidence is time-sensitive. If you only begin searching at the last minute, you may miss relevant lettings or reviews that support your position.

How to fix it:
Begin preparations 6–12 months before the review date. Early analysis allows for a measured, evidence-based strategy.

2. Misinterpreting the Lease Assumptions and Disregards

The rent review clause is the backbone of the process, and even small wording variations can have major financial consequences. Incorrectly applied assumptions can skew the rental figure dramatically.

How to fix it:
Have the lease reviewed by a rent review specialist. We regularly identify misinterpretations that would have cost clients tens of thousands of pounds.

3. Using Inappropriate Comparables

Not all evidence is equal. Too often, parties rely on properties that differ meaningfully in location, specification, condition, incentives or lease terms.

Common issues include:

• Retail comparables not adjusted for ITZA

• Office evidence ignoring fit-out or floorplate differences

• Industrial comparables with vastly different eaves heights or yard areas

• Evidence on very different lease lengths

How to fix it:
Use comparables that truly reflect the hypothetical letting. Adjust them properly, and discount those that do not pass scrutiny.

4. Ignoring Incentives and Market Softening

Headline rents rarely tell the full story. Rent-free periods, capital contributions and stepped rents can distort the true tone of the market.

How to fix it:
Analyse the net effective rent, not just the headline figure. The market may appear stronger — or weaker — than the headline data suggests.

5. Not Accounting for Physical Condition

A property’s condition, layout and specification play a crucial role in determining the market rent. Poor configuration, dated finishes, or unresolved repair issues can justify a reduced rental level.

How to fix it:
Record the condition at or before the review date with photographs and a brief schedule. This prevents assumptions being made that favour one party.

6. Assuming the Rent Can Only Go Up

This is a widespread misconception among tenants and sometimes even among landlords. Although many leases include “upward-only” provisions, the market does not always justify an increase — and in softer markets, the correct outcome may be a nil uplift.

We regularly advise tenants where the evidence supports no increase at all.

7. Trying to Negotiate Without Professional Advice

Rent reviews are complex and heavily evidence-driven. Negotiating without a specialist often leads to:

• Weak arguments

• Failure to challenge incorrect assumptions

• Accepting unsupported rental proposals

• Missed opportunities for downward adjustments

• Unfavourable third-party decisions

How to fix it:
Instruct a Chartered Surveyor with rent-review expertise early in the process. Professional representation usually pays for itself very quickly.

Conclusion: A Well-Managed Rent Review Protects Your Position

A properly handled rent review is not a formality — it is a negotiation. With the right preparation, evidence and expert input, landlords can secure strong and defensible increases, while tenants can avoid unnecessary rental costs.

At Olden Property, we act for both sides across the South East and London, providing clear advice based on current market evidence, lease interpretation and sector-specific analysis.

If you have an upcoming rent review or want an early assessment of the likely rental tone, we would be pleased to assist.