Small Business rent review

[digisatman]

Hi all,

Got my 5-year Small business (newsagent) rent review in through the post. The proposal is a 35% INCREASE .

I dont think this can be justified, any views?

Digi

 

[100%Bitch]

Not unless the property has suddenly become extremely desirable.

 

[grayb]

Commercial property values have not been going up as far as I know! Smaller retail units shouldn't command big rises in rent in the current economic climate as far as I can see - but I'm no expert! You could get professional advice about rental values in your area from a Chartered Surveyor.

 

[jberks]

I does depend on what the local equivalent rents are and whether you've been getting a bargain up till now. That said, its a negotiation point. If you've been there a fair time, paid your rent and done the repairs then in the current economic cycle, they may well not want to upset you too much so its for you to go back with a low counter offer, intending to settle somehwere in the middle.

Case in point - I have a house I rent out. As residential rents have risen over the last few years I would be well within my rights to increase it substantially. But, The tenants have been there several years now, always pay on time and look after the place so what price greed? I could get more, they decide they cant afford it and leave and I get an empty property for a bit or a tenant from hell. Its just not worth it so I leave well alone.

There are also things that you can use. My father got out of a lease by demanding the landlord fix some expensive external things there were responsible for (or let him out). You may not want to leave but there are normally things you can use against them as leverage.

 

[davidsl500]

The rent increase notification is usually just the start of the negotiation. The landlord will not expect to achieve this increase but theres no harm in him trying - just in case you say yes to it !

One of the first things to do is to check your lease agreement to see how rent increase disputes are handled. Most will have some statement to the effect that if a rent figure cannot be achieved then it will go to an independant arbitrator whose figure will be binding. Alot of Landlords dont like going down this route as its just more expense (usually the cost of the arbitrator is shared). It can sometimes be worth threathening the "arbitration card" just to get a stuborn Landlord round the table to talk.

Next, check out rental costs of similar size properties in the area so that you can determine the "market rental value" and use this a part of the negotation (assuming you can find rental value lower ")

Before you suggest that the rent should be lower due to poor maintenance check out your lease to see who is responsible ! Many leases are "full repairing" which means the landlord will be prompting you to do them as its your responsibility !

Some negotations can go on for some time - often past the increase date. Pay the pre-increase rent as normal and the backdated amount when the new rate is agreed.