GPs urged to review rents for pharmacy tenants
GP practices letting space to pharmacies should remember to review their rental income amid rising market values, surveyors have said.
The advice comes as one doctor premises-specialist chartered surveyors firm has seen average rent increases of 49% negotiated between 2012 and 2014.
GPs were also advised that they could action rent reviews ‘retrospectively’, even if they had failed to remember to do regular reviews.
According to GP Surveyors director Chris Johnson, practices could increase their income by anything between £8,000 and £200,000 over a typical 25-year lease.
He said: ‘[This] is a huge figure which would play a significant part in helping GP surgeries across the country who are struggling financially.’
He added: ‘If it was found that the pharmacy was paying too little, the pharmacy would have to pay this shortfall to the practice. This is normally plus interest – depending on the interest provision outlined in the lease.’