Working with landlords

Planning for rent reviews

Rent reviews will take place at set times set out in the lease. These could be formula-based (e.g. fixed percentage or Consumer Price Index) reviews or full market reviews.

Agencies should check and diarise rent review dates, and make sure they understand:

• the type of rent review
• any exclusions for the rent review
• any ratchet clauses within the lease
• the process and notice period required to dispute a rent increase.

Rent review clauses in leases can be complex, so talk to the GPO or legal advice where required.

You must get an independent market rental valuation from a registered valuer before accepting any proposed market rental increase.

Valuation reports

Valuation reports should include:

• an assessment of the current market rental for the premises or building
• evidence of comparable rents and analysis and reconciliation of the evidence to the market rent for the premises (and car parks if any)
• copies of any specialist technical advice (like engineering reports) referred to in the report
• details of which improvements are included or excluded in the determination of the market rental.

If you have any queries about rental valuations, contact GPO. We may be able to provide information from other recent valuations of a similar type.

Making building additions and alterations

If you want to make any additions or alterations during the lease term, you are likely to:

• need prior written approval from the landlord
• have make-good obligations as a result of the works (see more on this below)
• need consent from any local authorities depending on the nature of the works.

Project management

Preparing for lease renewal or exit

Allow enough time to notify landlord of your intentions

• Lease renewal notification timeframes can vary depending on the landlord - often between 3 and 12 months before the lease expiry date.
• Mandated agencies must have GPO approval before renewing, ending or starting to look for a new lease.
• For most agencies, this approval will be part of ongoing planning discussions with your GPO Senior Portfolio Manager, rather than a one off event triggered by lease dates.

Lease approval process

Get in touch with GPO if your circumstances change and your intentions for a lease might be different from what has previously been discussed.

Be prepared to negotiate

Lease renewal can be a good time to:

• ask the landlord to amend existing lease provisions
• raise any issues relating to service or maintenance
• seek improvements, like new carpet.

The GPO can help agencies with negotiations if required.

If you are exiting the lease

Some leases will require formal notice if you are not intending to renew a lease, to avoid any auto-renewal clauses. Courtesy notice should always be given at a minimum.

You'll also need to follow our approval process including completing the lease disposal form.

Lease approval process

Make-good obligations

If you’re planning a lease exit, check whether your lease has a make-good clause. If so:

• review your lease to be clear on what you're obligated to reinstate
• speak to us early on – we may know of another agency that could use the space, which could reduce or remove your make-good obligations
• allow sufficient time to complete any reinstatement works after relocation
• seek legal advice to fully understand your obligations.

Using the Government Property Portal to maintain lease information

Mandated agencies must record all current office leases in the Government Property Portal. Non-mandated agencies can also subscribe to the portal.

The portal helps agencies:

• monitor lease obligations and set reminders for key dates
• store all lease-related information, including records of written correspondence, phone conversations and meetings related to the lease
• run rent review and lease expiry reports.

Keeping the portal accurate and up-to-date helps agencies keep on top of their leases. It also means GPO has a single source of truth to help with planning and decision-making on wider government property initiatives.

GPO can help agencies to enter their leasing information into the portal.

Government Property Portal