What is a common reason for including a rent review clause in a lease?

Including a rent review clause in a lease primarily serves the purpose of allowing periodic rent adjustments. This mechanism enables landlords and tenants to revisit and potentially adjust the rental rate at specified intervals throughout the lease term, reflecting changes in the market conditions or inflation. By embedding this clause, both parties can negotiate new rental amounts that accurately represent the current value of the property over time, ensuring that the rent remains fair and relevant.

This flexibility is beneficial for landlords who wish to maximize their returns in line with the market, and for tenants who want to ensure they are not locked into an outdated rental agreement that significantly deviates from prevailing rates. Overall, the rent review clause is a critical tool for maintaining equity in the rental agreement as market dynamics evolve.