28Rent reviews generally

28 Rent reviews generally (1) If a retail shop lease provides for a review of the rent payable under the lease or under a renewal of the lease, the lease is to state: (a) when the reviews are to take place; and (b) the basis or formula on which the reviews are to be made. (2) The basis or formula on which a rent review is to be made is to be one of the following: (a) a fixed percentage; (b) an independently published index of prices or wages; (c) a fixed annual amount; (d) the current market rent of the retail shop lease; (e) a basis or formula prescribed by the Regulations. Business Tenancies (Fair Dealings) Act 2003 23 (3) A provision of a retail shop lease is void to the extent that it precludes or prevents a reduction of rent or limits the extent to which rent may be reduced. (4) Subsection (3) does not apply to a provision that uses: (a) a basis or formula mentioned in subsection (2)(a), (b) or (c); or (b) a basis or formula prescribed under subsection (2)(e) that is also prescribed as a basis or formula to which subsection (3) does not apply. (5) A rent review is to be conducted as early as practicable within the time provided by the lease, and if the landlord has not initiated the review within 90 days after the end of that time the tenant may initiate the review. (6) A rent review provision in a retail shop lease is void if the lease does not specify how the review is to be made. (7) If a provision in a retail shop lease that provides for a review of the rent payable under the lease does not comply with subsection (2), the rent is to be: (a) as agreed between the landlord and tenant; or (b) if there is no agreement within 30 days after the landlord gives the tenant, or the tenant gives the landlord, a written notice specifying an amount of rent for the purposes of the review – the amount determined as the current market rent of the retail premises by a specialist retail valuer appointed by the Commissioner. (8) The landlord and the tenant are to pay the costs of the valuation under subsection (7) in equal shares.