Since the introduction of the Section 132 of the Lnad and Conveyancing Law Reform Act 2009, which came into effect in February 2010 upward rent reviews on commercial property have been banned.  This means that commercial leases entered into subsequent to February 2010 no longer have upward only rent review claused in them, they are now normally based on the marked value rent of the property in any given year, and this is good news if you took a Lease after February 2010.

If you have a commercial Lease that pre-dates February 2010 then you may be stuck with your upward only rent review and this was illustrated very recently in the decision of Judge O’Neill in the matter of Johnny Ronan and the Medical Council see:

http://www.independent.ie/irish-news/courts/johnny-ronan-wins-820000-rent-case-against-medical-council-29272946.html

This latest decision is not good news for those business tenants who are trying to negotiate with their landlords for a reduced rent and whilst so far not all judges have taken this view we still have no certainty that a reduced rent will be favoured by the judiciary if they take the very literal interpretation of the legislation.  This is certainly a set back after the more positive outcome of the Bewley case a few weeks ago.

The Upward Only Rent debacle

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