Clause for rent review to higher of open market rent and rent based on RPI (non-annual review)

by Practical Law Property

A standard clause providing for changes during the term to the rent payable under a lease. The standard clause is drafted on the basis that the rent will be reviewed on an upwards only basis to the higher of the open market rent for the premises and the rent reviewed in line with the Retail Prices Index (RPI) (although a different index can be specified). Optionally, the standard clause provides for both a maximum and minimum increase at each review (often known as a capped and collared review or a capped and floored review). The standard clause provides for a rent review that occurs less frequently than annually. While the optional cap and collar are based on cumulative maximum and minimum increases each year, there is no change to the rent between the specified dates for rent review. The standard clause is drafted to fit into the Practical Law Property standard document leases but can also be adapted for use in other leases.