Rental increase

[Crusader]

I own a small business. I had a contract with the previous owners of the premises which expired in 2010. The new owners bought the building in 2005. The first rental increase they wanted back then was 25%, but since I had the previous contract I only paid 10%.

For 4 years they haven't increased the rent, but now they want a cummulative increase of 40%. Is this an acceptable practice? This increase would mean that it is no longer profitable for me to keep my business open (especially taking the current economic climate into account).

Also would they be required to provide basic cleaning services for the building (not my shop), but the hallway connecting different shops etc, or at the very least lighting for the building exterior & hallway during the night?

 

[Wyzak]

If the rent hasn't gone up in the last few years count yourself very lucky. The rates and taxes to the owner have gone through the roof, and increased about 25% minimum per year.

The owner is allowed to charge whatever he wants for the property. He is probably looking at market related value, and an increase of 10% per year is probably well within acceptable ranges considering the increases I mentioned in the first paragraph. Just because he hasn't increased it in the last few years doesn't mean he can now only increase it by 10%.

He is only required to provide basic cleaning services if the contract that you or other tenants have with him states that. If it does state it, take it up with him. If not, your out of luck.

It is very unfortunate that another business might have to close due to the outrageous municipal increases every year.

 

[Crusader]

Just emailed my notice through to them. I simply can't stay open with business as slow as it is.

This is for a small town location so the rates and taxes haven't gone up by that much. Also the building accommodates 7 businesses so that increase would be far less when divided between the businesses.