Rental Determinations / Rental Reviews

PWE Property Consultants & Valuers provides independent market rent reviews and rental determinations for commercial, industrial and retail property across the Perth metropolitan area. We act for landlords, tenants and their advisers, and every assessment is prepared by a licensed valuer with over 20 years’ experience.

What is a rental determination?

Most commercial leases provide for the rent to be reviewed to market at set points, typically at an option renewal or part-way through the term. Where the landlord and tenant cannot agree on the new rent, the lease usually requires it to be determined by an independent licensed valuer. That determination is generally binding on both parties.

Market rent reviews and determinations

We are engaged in two ways:

• Acting for one party. We assess the market rent for a landlord or tenant before or during negotiations, so you know where the rent should sit and can negotiate from evidence.
• Acting as the independent valuer. Where the parties cannot agree, we are appointed jointly or under the lease to determine the rent, considering submissions from both sides.

Retail shop leases

Retail shop leases in Western Australia are covered by the Commercial Tenancy (Retail Shops) Agreements Act 1985, which sets out how a market rent review must be carried out, including determination by a licensed valuer where the parties cannot agree. We regularly carry out reviews under the Act for shops in shopping centres, strip retail and mixed-use buildings.

Our rental valuation services

• Market rent reviews at option and mid-term review dates
• Independent rental determinations under the lease
• Rental advice for new leases and lease renewals
• Office, retail, industrial and warehouse premises
• Ground rents and leases of land
• Rental assessments for local government and community leases

Why choose PWE for rental determinations?

A sound rental assessment depends on current leasing evidence and a close reading of the lease, because the review clause determines what must be taken into account and what must be disregarded. PWE’s directors are all licensed valuers, each with more than 20 years’ experience across Perth’s commercial, industrial and retail markets, and we are regularly engaged by property owners, tenants, property managers and local governments.

We also provide SMSF property valuations, which often require a market rent assessment for related-party leases.

Frequently asked questions

What is the difference between a rent review and a rental determination?

A rent review is the process set out in the lease for adjusting the rent. A rental determination is the formal decision of an independent valuer where the parties have not been able to agree.

Can the rent go down at a market review?

It depends on the lease and the type of premises. Your lease, and for retail shops the Act, will determine whether the rent can fall. We can advise once we have read the review clause.

Who pays for the valuer?

Where a valuer is jointly appointed to determine the rent, the cost is usually shared between the landlord and tenant, subject to the lease.

What do you need from me?

A copy of the lease and any variations, the review date, the current rent and outgoings, and access to inspect the premises.

Which areas do you cover?

We act on premises throughout the Perth metropolitan area.

Talk to a valuer

Call (08) 9228 9955 or send us a message to discuss your rent review or rental determination.

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