The expert will follow a set procedure and charge a fixed fee. Both the landlord and tenant must agree to use the scheme, and by doing so, they will benefit from getting the rent fixed quickly, cheaply and efficiently.
Why use the Small Business Scheme for rent reviews?
The scheme offers:
- An independent and fair review
- Fixed rate fee
- Backing and experience of RICS
- Flexibility to appoint additional advisors if necessary
When deciding whether or not to use the scheme, landlords and tenants should bear in mind that if they do not, the rent review may still go ahead using the procedure set out in the lease, which may result in a more expensive procedure than envisaged under this scheme.
Under this scheme, the independent expert will make his or her own investigations and rely on the market knowledge to reach a decision. The parties may feel they can rely on this expertise and not instruct their own valuers which will keep the costs down. However, the scheme allows them to use their own valuers and to submit evidence if they wish, although the independent expert will not be bound to rely upon this material.
Once both parties have signed up to the scheme, if one party then fails to co-operate, the scheme enables the independent expert to reach a decision but also ensures that he or she will have the benefit of the views, opinion or other evidence provided by the party who does co-operate.
