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Landlord to increase business rent by 20%

Started by Myballou, August 01, 2012, 05:01:41 AM

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Myballou

I have been renting a business property on a small industrial yard since 2005. I have invested a lot of money having equipment installed & has been working really well. There are 2 other businesses on the yard & both seem to be busy. The landlord hasn't put the rent up at all since I've been there, he's probably not been all that concerned about it. He is starting to struggle financially so has decided on increasing the rent which I feel is fair but he is suggesting an amount in the region of 20% to cover lack of past years' increases. I feel that this is an excessive amount in one go. It would indicate that there has been a steady increase in interest of in the region of 3% in interest rates over the last 7 years. Is he allowed to do this? I would be grateful for any advice. Thank you.

Jeremy

Hello Myballou,

The, not overly helpful, answer is that commercial contracts are not as tightly governed by consumer protection regulation so he is able to do whatever the contract allows him to do.  Feel free to post some clauses if you think it helps.

Or maybe come at the question from another angle.  Rather than thinking about what he's legally allowed to do, consider what the marketplace will let him do.  Being a commercial landlord has been a bit rubbish for most people these past five years.  Lots of empty units and rent is not bouyant.  If he could not rent the unit to a new tenant at what he's trying to charge you then you can always talk about your plans to leave...!

Myballou

Changing premises is certainly of consideration. Finically, it would be far better to buy somewhere but was happy with the easy life of renting. Looks like I've got some serious thinking to do. Great advice. Thank you.