Negotiating With a Landlord

We market the services of independent Surveyors. Surveyors pride themselves on a high standard of work. We can offer Schedules of Condition with regard to leases , Property Reports, Schedules of Dilapidations, Section 18 Valuations, Scott Schedules, Commercial Building Surveys, Structural Reports, Specific Defects Reports. Note these are not for bank lending but are to advise you how much we feel the property is really worth. If you have a property problem we may even already have written an article on it and we would refer you to the many articles we have on our website.

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Landlords and market condition

The landlord has a business that requires income streams from the leased properties, ideally once all of his properties are rented at market rent, however different properties become vacant at different times in different markets. By different markets we mean, for example, that properties may become vacant in a very good buoyant market or in a market that is heading into a recession.

Poor markets

Landlords in a poor market will want their properties to be occupied and bringing in rent. They will therefore reflect this in the type of companies they are prepared to accept, the rent levels that are prepared to be paid and even they will accept from lots of them schedules of conditions during poorer markets on properties they would not otherwise contemplate having schedules of condition on.

Understanding why landlords don't like schedules of conditions

Schedules of conditions record what the property looks like at a point in time. They put the tenant in the position where they can negotiate that they only return the property in this condition providing that it is appended and attached legally to the lease (please see article on schedules of conditions).

Average markets

In average markets, all things being equal, both the landlord and the tenant come from an equal position. However, it is the landlord that has the property and therefore he sets the ground rules. These would normally be that it will be let on a full repairing and insuring lease, with upward only rent reviews, no break clauses and no schedules of condition. The tenant has to understand that the market is good for both of them and therefore be prepared to negotiate if the right property becomes available to lease.

In a good market for the landlord

This will tend to be where the market is rising or is buoyant and the landlord has most, if not all, of his properties rented out. When they become available there will almost be a queue of people to rent them who will therefore be able to have them on a full repairing and insuring lease without break clauses, or schedules of conditions on good rents on upward only reviews that are not reviewed that often.

Are upward only rent reviews fair?

Most tenants upon first hearing about upward only rent review clauses feel that it is very unfair, as if in the future the economy changes for the worst they are stuck with paying rents above what the market would charge. We would equally argue that if the market is relatively stable they will simply pay about the going rate and that if the market is good at the time between the rent reviews, which can be anything between three years plus, means that they are paying less than the market rent during that time. Indeed, it can be argued that if the landlord doesn't have an upward only rent review clause he would have to initially charge a larger rent to allow for potential losses in years to come.

If you need help and advice with regard to leases, dilapidations, schedules of condition, dilaps claims, scott schedules, building surveys, structural reports, engineers reports, specific defects report, structural surveys, home buyers reports or any other property matter please call 0800 298 5424 for a friendly chat. Please note we are independent surveyors.

If you would like Dilaps Help then please visit our website and for Disputes go to our Disputes Help site .

We hope you found the article of use and if you have any experiences that you feel should be added to this article that would benefit others, or you feel that some of the information that we have put is wrong then please do not hesitate to contact us (we are only human).

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Back to our main menu on Dilapidations

Dilapidations for Landlords and Investors including an example of a Scotts Schedule

Dilaps Claim by a Landlord

Landlord's View on a New Business Taking on a Lease

What the Landlord wants in a Tenant

Landlords, can you have too good a tenant?

Landlords What do they Look For in an Investment Property?

Landlords What do they Look for in Industrial Properties?