Turnover Rents - Can Landlords Have it Their Way?

Introduction

Established lease structures have been challenged over recent years, as both landlords and tenants seek ways to support businesses. Switching from open market rental to a turnover-based arrangement is an increasingly popular way of assisting tenants and has the added advantage of being relatively familiar.

Simplified turnover rent arrangements are emerging, but so are more creative ways of structuring such arrangements. However, landlords have traditionally been cautious about taking on part of their tenants’ business risk, and can often be restricted by their lenders, who look to safeguard themselves by a range of terms. Is the offer to share the risk a substantial one?

This webinar includes consideration of recent case law and considers the principles of turnover-based rent in outline, while looking critically at the balance of risk, and also considering whether such arrangements need to be as complex as has traditionally been the case.

What You Will Learn

This webinar will cover the following:

• Advantages and disadvantages of turnover rents, for landlords, tenants and lenders
• Evolution of the turnover rent idea
• Calculation of turnover rent
• Ability to revert to an open market rent
• Implications for alienation, rent review, break options and user restrictions
• Can a court order a turnover rent arrangement in a lease renewal?

This webinar was recorded on 14th August 2023