Rent review memorandum

This document contains a draft rent review memorandum to be signed by the parties to a lease once a rent review has been settled.

A memorandum recording an increase of rent should be attached to the original and counterpart of the lease - whether or not the lease says so. The aim of attaching a memorandum is to prevent future arguments as to whether a rent review has been settled. The memorandum should recite the fact that the rent review was settled in accordance with the rent review clause (assuming, of course, that that was the case). If the rent review was settled by an expert or an arbitrator, details of the determination (together with documents and submissions filed in relation to the determination) should be retained with the lease and counterpart.

Ordinarily, the memorandum will be signed by the landlord and the tenant. If a rent review is settled other than in accordance with the rent review clause, the effect of the settlement may be to vary the lease - with all of the attendant consequences of varying leases. In such a case, any tenant's guarantor should signify its consent to the settlement.