Landlord wants to 'defer' rent review - should I agree?

[Nick1]

Apologies for making this my first post. I've been a 'lurker' for a while but this issue has arisen today and I'd really appreciate some outside opinions..

Myself & my good lady wife run a small shop.

Our rent is reviewed every 3 years, and is due to be reviewed this summer.

The landlord has just been in to see us and proposed that he 'defers' the review until next year, with the next review being 2 years after that (bringing it back in line with the original 3 yearly schedule).

He's selling this to us as a good thing as it will peg our rent at it's current level for another year.

I'm thinking that in the 'current economic climate' the rent review might lead to a negligible (or nil?) rise in rent, but if it was to be reviewed in a year things *might* be better and lead to a greater rise in the rent.

Basically, I think he's trying to pull a fast one.

He wants our written agreement to his proposal, so, should we agree???

 

[Acu-IT]

Personally i would want the review ASAP with interest rates, property valuations, negative inflation, and the economy in a bad state it means that you have the upperhand whereas the landlord will be wanting to hold so that the property is more marketable and thus more in his favour.

Then again you will have a record of previous rent increases as a guide and as such will be in a better position to guage if a zero rise this year would actually be beneficial in savings over the term than a larger rise next year.

Personally i would be asking for a reduction in rent stating the above reasons if i was in your position, but again that will depend on your exact location ie empty shops nearby = reduction, busy hard to get location you may need to tread carefully.

 

[Nick1]

Then again you will have a record of previous rent increases as a guide

Unfortunately not, this is the first review we've had - we have only been going 3 years.

Personally i would be asking for a reduction in rent

That would be great, but the lease stipulates that the rent cannot go down at a review :angry:

 

[Mike Lewis]

Nick,

Your analysis is spot on. He's betting that he won't get much of an increase this year, if any, and that he'll do better next.

I think you're right to insist on keeping to the original terms. Alternatively, you could consider agreeing to the deferrment, but then say that, after next year, reviews should still be every three years.

Mike