Rental Determination

What is rental determination? 

Rental determinations arise when a tenant and landlord fail to reach a consensus on the lease's market rental value during a rent review period. In these cases, a third-party valuer is enlisted to assess the rent independently to determine the fair rental payment. 

Factors considered in a rental determination 

In a rental determination, assessors will typically look at numerous factors to reach a decision. This can include: 

• The rental rates for comparable properties nearby
• Economic factors like inflation and Consumer Price Index (CPI) data
• Any upgrades or enhancements done to the property

Is a rental determination legally binding? 

The outcome of a rental determination is typically legally binding. However, both parties typically have the right to have review of the outcome be conducted by another third-party.