Rent Review Uplift Calculator

A rent review moves the passing rent toward the open market figure, but rarely all the way. Caps limit the increase, collars guarantee a minimum, and an upward-only clause prevents any reduction however far the market has fallen.

Applying those three in the right order is what produces the actual new rent, and it is frequently well away from both the passing rent and the market rent.

The order of operations

Start from the open market rent. Apply the cap as a ceiling on the passing rent plus the capped percentage, then the collar as a floor. Finally, an upward-only clause prevents the result falling below the rent already being paid, whatever the market says.

Worked example

A passing rent of 60,000 with an open market rent of 72,000, a 15% cap and a 5% collar. The cap allows a maximum of 69,000 and the collar requires at least 63,000. The market figure of 72,000 is above the cap, so the new rent is 69,000 — a 15% increase and 3,000 below market.

Caps and collars are worth negotiating

A cap protects a tenant in a rising market and a collar protects a landlord in a falling one. Because they are symmetrical in principle, agreeing both is usually easier than either alone, and it removes the largest uncertainty from a long lease for both sides.

Frequently asked questions