Please note this guidance on comparable rent evidence is indicative, it is only guidance, and is not meant to be a substitute for independent professional advice:
- The date of your evidence i.e. a new lease being granted or a rent review) should be as close as possible to your rent review date – the closer the better!
- Type of rent valuation – eg. Open Marketing Letting, rent review, lease renewal etc
- Full address of comparable property
- Size of property – split by internal and external space.
- Lease commencement date
- Rent being paid for property
- Rent being paid for land
- Type of lease (eg. Protected by L&T Act 1954 or Contracted out).
- Any special discounts/rent free periods, or other tenant incentives.
Comparable Evidence Ranking (in descending value):
- Open Market Letting – This is when a new tenant agrees to a lease of a property.
- New Letting by existing tenant – This is when your neighbour decides to expand their business and take on another lease.
- Rent Review (mid lease review) – This is when a neighbour has COMPLETED a revaluation of their rent.
- Lease Renewal – This is where one of your neighbours has agreed a rent revaluation at lease renewal
What is a Good or Bad Comparable?
Good Comparable
- Open market letting between a willing landlord and a willing tenant
- Rent agreed at a date very close to your revaluation date
- Location is very close to your property
- Use class are the same as yours
- Condition of the property is similar to yours
- The type of lease is the same as yours.
- The business in occupation is similar to yours
- Any rent discounts, lease concessions and rent incentives are shared in full.
Bad Comparable
- Transaction is not between a willing landlord and tenant eg rent review by default because tenant failed to reply; tenant is linked to landlord in some way such as they are members of a group company, etc
- Valuation date is very different to yours, months/years apart.
- The revelation or Letting is still in negotiations – not fully finalised but speculative.
- The use class is different to yours
- The nature of the business in occupation is very different to yours, eg. Dark Kitchen being compared to a Printers workshop
- Any rental discounts, lease concessions and rent incentives are not shared in full.
- Inaccuracies of detailed data eg. Square footage is wrong