The median income of all families in 1969 was about $9,400. This was about $800, or 9.3 percent, higher than the 1968 median income of about $8,600.

Cost of Living in 1967

Prices

Reasonable Commercial Rent Escalation On average, a percentage rent increase rate could be between 2% (this is near the consumer price index); and. 5% (this is on the high side of the market). It is important to remember that you can always negotiate for more favorable terms.

every three to five years

Usually, this will be each anniversary of the commencement date of the lease. In practical terms, this means that the rent will increase by the amount of the fixed review every year on the anniversary of the commencement date. This amount is usually between 2%-5% of the current rent per year.

The average rent increase per year is, give or take, somewhere between 3% and 5%. For a monthly rent payment of $1,500, for example, we’re talking between $45 and $75 more per month.

Unfortunately, most commercial leases specify that rent can be adjusted “upwards only”, which means your rent can only either increase or stay the same with each review. Even if market prices are falling, your rent will remain static rather than decrease.

The lease provided that ‘the annual rent for a review period is to be determined at the relevant review date by multiplying the initial rent by the index for the month preceding the relevant review date and dividing the result by the base figure’.

For a periodic tenancy – one that is paid on a rolling week-by-week or month-by-month basis – a landlord cannot increase the rent more than once a year without your agreement. For a fixed-term tenancy – one that is paid up for a set duration, ie a year – your landlord can only increase the rent if you agree.

There are various types of rent review: fixed increases, percentage uplifts, formulaic reviews such as inflation-adjusted index-linked, ground rent reviews geared to open market rent, turnover rent review comprising a base figure plus a percentage of the turnover of the tenant’s business, and open market reviews where …

Types of Rent:

• Economic Rent: Economic rent refers to the payment made for the use of land alone.
• Gross Rent: Gross rent is the rent which is paid for the services of land and the capital invested on it.
• Scarcity Rent:
• Differential Rent:
• Contract Rent:

Normally the landlord and tenant will pay no more than £500 each for this – and possibly less. For more information ring the RICS on (020) 7222 7000 and ask for the Dispute Resolution Service, or go to www.rics.org. If either party wants their own professional advice, they will need to pay for that separately.