Rental Determinations / Rental Reviews | PWE Property

Rental Determinations / Rental Reviews

What is a Rental Determination?

A rental determination occurs when a market rent review is stipulated within a lease and the tenant and landlord cannot agree on the market rental figure. In this instance a licensed valuer (or valuers) is appointed is act impartially to provide a determination on a rental figure in accordance with the lease. The determining valuer (or valuers) must be agreed upon by both parties.

Why do I need to Engage a Valuer for a Rental Determination?

In cases where a determining valuer can’t be agreed upon by both parties, sometimes a determining valuer is appointed by the President of the Australian Property Institute (API). In this instance both parties are given the opportunity to provide a submission in the form of an independent valuation. This is highly recommended to ensure that one’s position regarding the rental dispute is formally supported.

What is a Rental Review?

A rental review is typical in commercial properties and can vary in type according to the Lease. Typically, but not always, a lease agreement may allow for either an increase in rental based on the Consumer Price Index (CPI), fixed increase or a market review.

What is the Benefit in Engaging a Valuer when there is a Rent Review in my Lease?

There are several factors that need to be recognised during a rent review on a commercial property. The lease needs to be interpreted correctly with factors such as “Ratchet Clauses”, Consumer Price Index (CPI) calculations and fixed price increases all being needed to interpret and consider.

Sometimes interpreting the Commercial Tenancy Agreements (Retail Shops) Act 1985 and what the ramifications of the Act are on your specific circumstances also required. Then there is also often the factor of negotiating a market rent.

In these instances, an experience licensed valuer can provide guidance in the interpretation of the lease and the processes involved to ensure that your position is protected. Also, in cases where a rental determination is likely to occur the valuer will further be able to submit a valuation to support your position.

Why is PWE Property Consultants and Valuers the best option for your Rental Determinations and Rent Review Requirements?

With a background in valuations, agency, and business we can provide rounded advice on factors around commercial rental determinations and rental reviews. With extensive experience in this area for several decades and a thorough understanding of the Western Australian commercial property market we are placed in a strong position to help you navigate the entire process to ensure a result that protects your position.


Contact us directly to discuss your rental determination and rental review requirements.

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