What is a rent review memorandum?
Most commercial leases with a rent review clause expect the outcome to be written down, and leaving it in an email chain causes problems later. A buyer of the building, a lender, a new tenant taking an assignment or the next review surveyor will all ask what the rent is and when it last changed. A rent review memorandum answers that in one document signed by both sides.
This memorandum identifies the lease (and its original parties if it has been assigned) and records the review date. It sets out how the new rent was set (agreed, by an expert, by an arbitrator, by index or fixed increase, or by negotiated settlement), the rent before and after, and the date the new rent is payable from. It deals with back-rent for the period since the review date, with or without interest, and notes the next review date. It also confirms that every other term of the lease is unchanged.
- Best for
- Recording the settled outcome of a commercial lease rent review
- Signed by
- Landlord and tenant, each with a job title
- Covers
- New rent, how it was set, effective date, back-rent and interest, next review
- Length
- 1 to 2 pages
When to use a rent review memorandum
- Recording a new rent agreed with your tenant at a five-yearly open market review
- Documenting an index-linked uplift calculated under the lease
- Putting an independent expert's determination into a signed record
- Settling a late review with a lump sum of back-rent
- Giving a buyer or lender clear evidence of the current passing rent
What you fill in
21 blanks, then the name and email of each person who signs: landlord, tenant.
1 The lease
- Date of this memorandum*
- Landlord (legal name)*
- Tenant (legal name)*
- Premises*
- Date of the lease*
- Original parties to the lease (optional)
2 The review
- Review date*
- Currency*
- Rent before the review*
- New rent*
- Rent is stated* per year · per month · per quarter
- How the new rent was set* agreed between the Landlord and the Tenant under the rent review provisions of the Lease · determined by an independent expert appointed under the Lease · determined by an arbitrator appointed under the Lease · calculated by applying the index or fixed increase set out in the Lease · agreed between the Landlord and the Tenant as a negotiated settlement of the review
- More detail (optional)
3 Payment
- New rent payable from*
- Back-rent* No back-rent is payable. · Back-rent is payable, as below.
- Back-rent amount (if payable)
- Back-rent due by (if payable)
- Interest on back-rent* no interest is payable on it · interest is payable on it as the Lease provides, in the amount below · interest is included in the amount above
- Interest amount (if any)
- Next review date (optional)
- Governing law*
4 Who signs
- Landlord signature and date, job title · The current landlord under the lease, signed by an authorised person.
- Tenant signature and date, job title · The current tenant under the lease, signed by an authorised person.
What the rent review memorandum covers
- The review
- The new rent
- Back-rent
- Next review
- Effect of this Memorandum
- General
Using the rent review memorandum, step by step
1 Identify the lease
Enter the landlord, tenant, premises, the lease date and the original parties if the lease has been assigned.
2 Record the review
Enter the review date, the old and new rent and the period it's stated for, and choose how the new rent was set, with any detail.
3 Deal with back-rent
Enter the date the new rent runs from and whether back-rent is due, with the amount, due date and any interest.
4 Add the next review and sign
Add the next review date if known and the governing law, then send it to the tenant to sign.
Tips before you send it
- Use the review date from the lease as the effective date unless you have agreed something different. Most review clauses work that way even when the review settles late.
- If there is a guarantor, tell them about the new rent and consider asking them to confirm in writing.
- Keep the memorandum with the lease and its counterpart, and file it in FileIt with the next review date as a reminder.
- Some leases or places require the rent change to be registered or made by deed. Check before you rely on this alone.
Sign it online in minutes
- Fill in the blanks. Names, dates and amounts go straight into the agreement — the preview shows exactly where.
- Name who signs. Tick “This is me” for your own part. FileIt builds the PDF with every signature, date box on the right line, and you can check or move anything before sending.
- Send it. Each signer gets a secure link and signs from any device — no account needed. The signed PDF, with an audit trail and a Certificate of Completion, is filed in your vault and emailed to everyone.
Rent review memorandum: frequently asked questions
What is back-rent?
When a review settles after the review date, the tenant has usually kept paying the old rent. Back-rent is the difference between the new and old rent for that period, paid as a lump sum, with interest if the lease provides for it.
Does a rent review memorandum change the lease?
Only to record the new rent. It is not a new lease, and every other term, including the tenant's covenants and any guarantee, stays the same.
Does it matter how the rent was set?
Yes, for the record. The memorandum notes whether the rent was agreed, determined by an expert or arbitrator, calculated by index or a fixed increase, or agreed as a settlement, so the next review starts from a clear history.
Can this be signed electronically?
The template is set up for electronic signature. If the lease or local law needs a deed, witnesses or registration for a change of rent, check whether an e-signed memorandum is enough and follow those steps as well.