Most business owners don’t realise it but rent reviews are there to be challenged and negotiated, not just accepted.

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Handled poorly, they can add tens, even hundreds of thousands of pounds in extra costs every year. Handled well, they can be negotiated fairly, even resulting in no increase.

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The problem? SMEs rarely have the time, evidence, or expertise to challenge landlords effectively. Landlords, on the other hand, usually have professional advisors lined up whose job is to maximise rent. That imbalance leaves many occupiers paying more than market value, simply because of avoidable mistakes.

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We have experience in representing both landlords and occupiers on rent reviews across Manchester, Cheshire, Lancashire, Merseyside, Yorkshire and the wider North region. Again and again, we see the same five mistakes costing SME occupiers money, flexibility, and negotiating power.

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The good news is that every one of these pitfalls can be avoided with the right approach.

‍The Hidden Cost of Rent Reviews for SMEs

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For most SME occupiers, a rent review feels like a routine admin event. The landlord’s agent sends a letter, quotes a higher rent, and the business either accepts or pushes back half heartedly.

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But here’s the truth: rent reviews can add tens, if not hundreds, of thousands of pounds in extra costs over the life of a lease.

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Take a simple example:

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• A 16,000 sq ft warehouse in Trafford Park paying £8.50 per sq ft.
• At review, the landlord pushes to £12.50 per sq ft.
• That’s an increase of £64,000 per year or £320,000 over a five year term.

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For an SME with tight margins, that could be the difference between hiring staff, investing in growth, or standing still.

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The cost isn’t just financial. Once agreed, the uplift is locked into the lease which means future rent reviews (which are typically upwards only) and lease renewals often start from this inflated level. Landlords know this, which is why reviews are one of their most powerful tools.

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Here are the five costly mistakes SME occupiers make at rent review and how to avoid them.

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Mistake #1: Accepting the Landlord’s First Offer

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Landlords (and their agents) nearly always pitch high. It’s a starting point, not a final figure. Yet many SMEs treat it as non-negotiable and sign it off.

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The result? You’re effectively gifting your landlord free money, because they expect to be negotiated down.

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👉 Example: A client in Stockport was quoted a 75% uplift by their landlord’s agent on a 126,000 sq ft industrial unit. By challenging the comparables and negotiating firmly, we secured a reduction to just 15%. Over five years, that saved the business £1.2million.

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How to avoid it:

• Treat the landlord’s proposal as an opening bid.
• Always get independent advice, preferably from an RICS Registered Valuer.
• Remember:  the landlord’s agent is not acting in your interest.

Mistake #2: Failing to Gather Proper Market Evidence

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A rent review is an evidence-based process. The landlord will arrive armed with “comparables” (recent lettings, reviews and renewals in the same or similar buildings) that justify their proposed increase.

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The problem? These comparables can often be selective and skewed in the landlord’s favour. Many SMEs either accept them at face value or try to do DIY research on Rightmove - which rarely holds up in negotiations.

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👉 Example: In Cheshire, a landlord’s agent pushed for £24.00 per sq ft using data from a brand new Grade A office nearby. Once challenged with true like-for-like comparables (older stock, secondary location), the agreed rent was £17.50 per sq ft.

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How to avoid it:

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• Secure  independent evidence from a chartered surveyor with good local knowledge of the asset class, with access to accurate data.
• Focus on genuine comparables - same location, size, and specification.
• Remember:   landlords pick the best evidence for them. You need someone picking the best for you.

Mistake #3: Ignoring the Rent Review Date

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Many occupiers assume that if nothing happens on the review date, the opportunity has passed. In reality, that’s not the case. Time is rarely “of the essence” in rent reviews, which means a landlord can initiate the process years later and often claim backdated rent, plus interest.

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This can result in significant, unexpected liabilities.

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👉 For example, we acted for a retail occupier in Liverpool whose landlord attempted to backdate a rent review by five years with the review date falling right in the middle of COVID. The landlord presented a demand for arrears at a time when the high street was struggling and very few occupiers were paying full rents, with many negotiating rent reductions. By using robust market evidence and statistics, we demonstrated that retail space in 2020 would only have let at heavily discounted levels. This evidence negated the landlord’s claim and ensured the occupier was protected from an unfair outcome.

How to avoid it:

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- Treat the rent review date as a trigger to act, not a deadline to ignore.

- Open discussions early and aim to settle close to the review date.

- Proactivity avoids backdated surprises, smooths negotiations, and keeps cash flow under control.

Mistake #4: Not Understanding the Rent Review Clause

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One of the most common pitfalls for occupiers is not fully appreciating what a rent review really is or how it’s calculated. It isn’t just a landlord “naming a number” or a simple uplift on rent per sq ft.

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A rent review is meant to reflect what a hypothetical letting of the property would achieve on the open market at the review date. This is assessed by reference to the specific assumptions and disregards setout in your lease.

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Those details matter. Assumptions could include the property being in good repair, or a rent-free period being disregarded. Disregards might exclude improvements you’ve made as an occupier from being counted in the valuation. Subtle differences in wording can make a huge difference to the outcome.

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👉 Too often, SMEs skim past the legal jargon in their lease and end up at a disadvantage when the landlord’s advisor interprets the clause in their favour.

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How to avoid it:

• Read your rent review clause carefully (or have a professional explain it in plain English).

• Understand the key assumptions and disregards before negotiations begin.
• Keep all legal documents to hand, including licences for alterations, so any occupier improvements are properly documented

Mistake #5: Going It Alone Without a Specialist

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Many SMEs try to “have a go” themselves or rely on the landlord’s surveyor for guidance. The issue? The landlord’s advisor owes you no duty of care, their job is to maximise value for the landlord, just as our duty is to secure the best saving possible on behalf of you, the occupier.

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Without specialist support, SMEs often overpay or agree terms that hurt them long term.

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👉 One North West manufacturer came to us after they incorrectly responded to their landlord’s notice to increase their rent by 25%. By the time we became involved, it was too late to challenge. Had they engaged a specialist earlier, the increase would likely have been halved.

How to avoid it:

• Use an independent surveyor who will represent you in negotiations
• Look for someone with local market knowledge (Manchester/Cheshire/Lancashire or wherever you are based).
• Don’t wait until after you’ve agreed, involve them early.

What Occupiers Can Do Differently

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The biggest takeaway is this: rent reviews aren’t routine admin, they’re negotiations that can cost or save your business thousand/hundred's of thousands of pounds.

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If you’ve got a review coming up, here are three simple steps:

1. Check your lease dates now – don’t wait for the landlord’s letter.
2. Gather proper market evidence – real comparables, not what the landlord cherry-picks.
3. Bring in an advisor early – someone who fights your corner.

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Handled correctly, a rent review can be settled fairly, based on genuine market value, not just the first figure put forward by the landlord.

Have a rent review coming up or outstanding?

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If your business is facing a rent review in Greater Manchester, Cheshire, Lancashire, Merseyside, Yorkshire and beyond, now is the time to act.

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We are RICS Registered Valuers and lease advisory specialists who act for occupiers who lease commercial property or businesses that own their own commercial property. We’ll review your lease, check your landlord’s proposal, and give you a clear, no obligation view on where you stand.

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👉 Book your free initial consultation today and make sure your rent review is fair, evidence-based, and in your business’s best interests.