Reframing ratchet clauses in lease agreements Ratchet clauses in commercial property leases are something tenants love to hate. That’s not surprising because the implication is that with a ratchet clause, rents always go up at the time of a rent review. The ratchet clause in a lease is often that; a set in concrete element of the lease that means landlords can and will automatically ratchet up a rental when it is time for the lease to be reviewed. Just this week I was told by a tenant that the landlord was trying to… Ratchet clauses in commercial property leases are something tenants love to hate. That’s not surprising because the implication is that with a ratchet clause, rents always go up at the time of a rent review. The ratchet clause in a lease is often that; a set in concrete element of the lease that means landlords can and will automatically ratchet up a rental when it is time for the lease to be reviewed. Just this week I Continue reading “Reframing ratchet clauses in lease agreements”
The end of the ratchet clause ambush The ratchet clause has long been a dirty word to businesses with commercial tenancies. More than 95 percent of leases have a ratchet clause. Traditionally they never advantage the tenant… The ratchet clause has long been a dirty word to businesses with commercial tenancies. More than 95 percent of leases have a ratchet clause. Traditionally they never advantage the tenant. Continue reading “The end of the ratchet clause ambush”
