Unreasonably high rental increase

[Bona Botse]

We've been renting our current business property for about 6 years and our 3 year contract is up for renewal. Rent has been increasing by 10% each year as per contract, and now with the renewal the landlord wants to hike the rent by 50%. We've been good tenants, always pay on time etc. The landlord's justification for the massive hike is that they want to renovate the building.

Moving is an option (we're not really a walk-in-centric business, and there are definitely better offices I've seen for the same rent as we're paying now) but I feel that the office location is part of our brand, so to speak, and I also want to avoid all the schlep that goes with moving a business.

Do I have any other options apart from "***-en-betaal" and "flip bird and move"?

 

[P924]

You can try and talk to the owner. If the you are paying above the going rate, then he would be stupid to try such a trick. If you decide to leave, he would be forced to lower the rent and get a new tenant without a history. So perhaps look at getting a new place, get quotes for moving, basically get ready to move and then talk with the owner and tell him you will stay if he keeps the rent reasonable. Renovating should not influence you unless it will increase his rent potential. He most likely wants you out either to renovate, or some other reason and that is the real reason for the increase...

 

[biena]

We've been renting our current business property for about 6 years and our 3 year contract is up for renewal. Rent has been increasing by 10% each year as per contract, and now with the renewal the landlord wants to hike the rent by 50%. We've been good tenants, always pay on time etc. The landlord's justification for the massive hike is that they want to renovate the building.

Moving is an option (we're not really a walk-in-centric business, and there are definitely better offices I've seen for the same rent as we're paying now) but I feel that the office location is part of our brand, so to speak, and I also want to avoid all the schlep that goes with moving a business.

Do I have any other options apart from "***-en-betaal" and "flip bird and move"?

What does your contract say ?

 

[Johnatan56]

We've been renting our current business property for about 6 years and our 3 year contract is up for renewal. Rent has been increasing by 10% each year as per contract, and now with the renewal the landlord wants to hike the rent by 50%. We've been good tenants, always pay on time etc. The landlord's justification for the massive hike is that they want to renovate the building.

Moving is an option (we're not really a walk-in-centric business, and there are definitely better offices I've seen for the same rent as we're paying now) but I feel that the office location is part of our brand, so to speak, and I also want to avoid all the schlep that goes with moving a business.

Do I have any other options apart from "***-en-betaal" and "flip bird and move"?

What does your contract say ?

.

 

[heartbroken]

Do I have any other options apart from "***-en-betaal" and "flip bird and move"?

Well if the existing contract expired, you will have to try and renegotiate with the landlord, but if he keeps being unreasonable, just give him the one finger salute and move on.

 

[akescpt]

50% is a bit shyte. are you on good terms. seems like he wants to get rid of you but you not taking the bait.

 

[SlinkyMike]

Sorry to have to say but I think the landlord wants you out.

It's most likely not personal, they probably see that the value of their property is higher than what they are currently seeing - this is also why they are looking to reinvest by renovating.

If you stay through the gore of renovations, expect a further 50% hike.

This is just my opinion pf course, I do not know your landlord and I am not telepathic.

 

[biena]

btw if there is really going to be renovations then your walkin customers is going to drop off while renovations is being done. Take that into account also.

 

[TehStranger]

Landlord clearly wants more out of the property, and is willing to risk losing you as a tenant, meaning he probably has someone else lined up should you decide to take a hike.

50% increasae is quite large, and if you can justify it then you're probably aware that you're currently underpaying.

I'd duck if I were you.

 

[longboy]

Move out. The landlord doesn't like you.

 

[Drifter]

Yep, flip the bird and move.

 

[Bona Botse]

I haven't thought that the landlord might just want us gone. 6 years is a long time and we've never missed a payment (debit order) so I reckon we're good tenants. But a 50% hike with no forewarning does read like they want us gone as there's no way I'm agreeing to it.

What does your contract say ?

Contract says nothing about renewal, just the increases while in contract.

50% is a bit shyte. are you on good terms. seems like he wants to get rid of you but you not taking the bait.

Seems so, so one finger salute it is.

btw if there is really going to be renovations then your walkin customers is going to drop off while renovations is being done. Take that into account also.

We are NOT walk-in-centric .

 

[TheMightyQuin]

btw if there is really going to be renovations then your walkin customers is going to drop off while renovations is being done. Take that into account also.

Did you actually read and UNDERSTAND the thread??

 

[silver6933]

Contract says nothing about renewal, just the increases while in contract.

From a legal point of view(I some contract law courses), there is nothing you can do. Current contract is over and he can renegotiate at the end. He can make it XXXX% and you can chose to say yes or move out.