40% rent increase ??????

[nailzoo]

I've just recieved a letter today, I have a 3X2 year lease and decided to take up my option, I got it at 4pm today (a Friday) and rang my solicitors office, he wasn't in, but personally I had to get it out....... I have written a quick draft (which my solicitor will ammend on Monday), I don't like to go on sympathy trips of share my crap with many, but I just thought i's share the draft with you.

You may be in the same situation one day, this is merely a draft of my thoughts at this very minute and will obviously be changed.

Sorry for it being so longwinded ...... so here goes....

Dear whoever the f... you think you are,

I can only consider your proposal of rent increase of 40% as greed on you behalf or blackmail of a person proving an awkward space as viable.

If you choose to research any previous tenants you will see they have failed dismally. I often have innocent local passers by coming in to congratulate me on being inventive and surviving so long in such a small awkward space where they have seen so many failed in the past..

To be honest, it’s no wonder with approx 8 months of my 3 year tenancy being taken up with delayed repairs and constant roof leaks, often being the cause of me closing my business to mop up day after day and destroying property of mine that you would not understand it’s value, (such as autographs of famous clientele) which to you are mere pictures on walls, when to me they are priceless, invaluable collectors items, with no action taken against body corporate by me.

The building in itself is in disrepair, with the intercom being operational in about 6 months of my 3 years tenancy, with no access to visitors, (I imagine you would know this). The constant yelling of key sharing flat mates standing outside wanting keys to be tossed to the footpath is almost laughable, heaven forbid any tenant working shiftwork and requiring sleep.

Everytime a water heater blows up in the building above (quite often), every floor below said heater is flooded, eventually ending up in my shop (just 2 months ago 6 floors were flooded, with the end result ending up in my business. I would have thought sensibly that if all water heaters were installed at the same time (when the building was a motel) that they would all start to deteriorate within the same timeframe and would be duly replaced by a responsible body corporate.

It’s only been since other retail tenants have moved in (obviously claiming on body corporate insurance) that repairs have even been considered in due time.

Surely you have seen and heard of these repairs, or do you choose to disregard everyone’s plight?

I can grasp the increase of 5% per year, but for this new increase of 40% is beyond me, I am a sole trader and would have to find some way of increasing trade (which is possible if I were to give up my life), to employ others (which in such a small space is almost impossible) or to pass this ridiculous increase on to my clients (which they would not tolerate).

I’m not sure if you are aware, but my premises are 2x6 meters, not exactly a precious or workable space, Sure it’s suits my purposes, but it has proven to not suit many in the past or do you choose to take advantage of this situation?

The flavor of some areas is due to passing custom and the businesses within said area, some businesses are not based on bleeding the dollar from every passing person, merely from offering a service and being part of the local culture and sense of community.


I understand the market at this time is quite up and down (more up than down), but this seems to be predominate in the residential sector, rather than retail..

With the ever increasing interest rates many households are looking at ways to kurb spending …. Well my business is considered by many males (not being sexist, but often the breadwinners) as being a luxury and somewhere that costs can be cut by their partners.

I take on board the understanding of retail investment for a profit/living on behalf of the property owner, I now ask of you to take on board a small businessman trying to earn a living in premises that have never seemed to work for any other previous tenant.

Therefore I offer you the usual continuance of my tenancy at the previous reasonable rental increase of 5%.

 

[marioned]

How on earth can they consider such a ludicrous rent increase, given all the problems you have put up with? I hope you manage to come to a better resolution as I know all the hard work you have put into creating your business and reaching the level of professionalism you have achieved. Good luck!

 

[weezie]

They've obviously seen your success and want a cut. The increase is clearly ridiculous. I hope you manage to get through to them via your solicitor!

 

[PLAOH]

I love your reply. Fingers crossed you get in sorted and at the reasonable rate of 5%.

 

[mannipatch]

My heart really goes out to you as this must give you a lot of added stress.

I agree with weezie that your Landlord probably has saw you are successfull and wants a cut.

My sister in law actually went out of business for the same reason. She had a large salon for 20 years, she built it up from nothing. When the Landlord died the building was passed to his grown up children who were very greedy and kept putting the rent up until she said keep it and threw in the key.

I hope that you get this situation sorted out to your satisfaction

 

[Urban Geek]

I hope you get a good result Carl. As has been said, you are a victim of your own success. I am sure that if you didn't run a successful business, your landlord would just be grateful to have the place rented and occupied. You have made a small space work for you and now you seem to be getting penalised for that. Fingers crossed the greedy landlord comes to his senses. In the meantime, always expect the unexpected and keep you eye open for better alternatives. :hug:

 

[aliceellen1974]

As a commercial landlord myself would never on this earth rise a tenants rent by 40% as what it is based on an independent estate agent (real agents) assessment about what the value of the property is.

Personally to tackle this (and to support your letter - which by the way is fab) I would get an independent report on the value of rents in the area - therefore you have a substantial arguement to your cause.

Ask your neighbours how much rent they are paying too, to get an idea.

I know the laws are different in oz but PM me Carl if I can be of any more help!

all the best

xxxxxxxxx

 

[adelekeegan1]

This happened to friends of mine who ran an Italian restaurant which, although it had its own street entrance, was over a dry cleaners in a street of shops with no parking anywhere near.

It was the worlds smallest restaurant awkwardly spread over 3 floors and the place was always fully booked despite pretty cramped conditions. Dino was apoplectic one night when we arrived, he had received a similar demand. A back window was on the point of falling out, there was a leak in the roof which he had to get repaired himself and numerous other problems.

The place was unrentable and he had turned it into a success.

He appealed and after a 2 year fight won. By this time he had had enough and is now running a restaurant near Miami in Florida.

Landlord greed is one of the worst, a lease is a lease, this type of thing should be outlawed.

I wish you luck

 

[hippy-chick]

good luck Carl.

 

[VHunter]

ARe there no laws where you are?

That increase is LUDICROUS!!!! I am at a loss to understand how they feel that they can ask for it.

Here, in Quebec and the rest of Canada; there are "Rental Boards" in place to protect Landlords and Tenants alike, with certain rules and 'laws' in place so that no one is ripped off, and all are treated fairly.

In fact, here, there is no way in heck they could ask that sort of increase.

AND whatever increase they do ask for, they do NOT automatically get.
MOST ESPECIALLY in the case of repairs not being made and certain regular maintenance not being done.

At that price, you'd be better off buying your own property.
Geez, they are NUTS.

Keep us posted!!

 

[Martigirl]

I hope you get it sorted xxxxx:hug:

 

[Jen Smith]

Greedy Barstuards :irked:..... good luck with your letter.. lets hope they are prepared to see the whole picture .. keeping my fingers crossed for you Carl but I am not holding my breath... people like these are just out for themselves unfortunately.

:hug:

 

[sian1979]

Omg!!!! how freaky is that....
i have just got home from work where my boss has just told me that her rent has been put up by £500 a month to £1500.....she has just finish renovating the whole salon including a beauty room where there has been a leak for the last 6 months or so (and its just been fixed).....and was often flooded. She has got a steady client base and is doing ok....but still that is a big hike..... isnt it.
What is it with these property owners....the get someone in their premises that would otherwise sit empty (salon is on a housing estate in a parade of shops...not exactly a high street)....let them get set up and go about their business and then think 'I know...they are doing too well I want a cut of it'.
She feels she no option but to pay it....she cant just give the shop back and say stuff it....its her business.
It is soooo wrong!!!

 

[weezie]

Omg!!!! how freaky is that....
i have just got home from work where my boss has just told me that her rent has been put up by £500 a month to £1500.....she has just finish renovating the whole salon including a beauty room where there has been a leak for the last 6 months or so (and its just been fixed).....and was often flooded. She has got a steady client base and is doing ok....but still that is a big hike..... isnt it.
What is it with these property owners....the get someone in their premises that would otherwise sit empty (salon is on a housing estate in a parade of shops...not exactly a high street)....let them get set up and go about their business and then think 'I know...they are doing too well I want a cut of it'.
She feels she no option but to pay it....she cant just give the shop back and say stuff it....its her business.
It is soooo wrong!!!

If she does decide to pay she should try and get a written contract that this will not happen again for a certain number of years or it could just keep happening :hug:

 

[Snugglepuss]

I really don't know what to say, except good luck and keep on fighting! Hopefully they will come back and tell you it is a typing error and that it should say 4% rather than 40%

Anyway, I hope you get it sorted out - you have worked hard and are very talented and do not desrve to be treated like that, by some greedy no good landlord!

 

[Susie H]

You must be so frustrated over this Carl, I hope you get a good result with your bril letter. Landlords are the same the world over, very good or very short sited:irked:

 

[pure]

My god, I really don't understand how these landlords reason!:grr:

In the small town where I live there have been a recent spate of massive rent increases to the local traders which has resulted in the main shopping street of a charming, rural, market town becoming barren. The empty buildings and/or rapid turnover of new businesses can never been seen as good for any area.

I assume that your landlord will never be able to find a client at such a high rent so he will surely be losing out in the long term - wheres the logic?!

Love your letter, and I hope your solicitor can add some more biting remarks to it!!! :lol:

Good luck!

 

[minky]

Hiya Carl , that really sucks ,
the first thing I thought of was
would it be any use to suggest that you could perhaps purchase the whole premises off them ?

but then I thought,
sounds as though they are looking for cash ,
and perhaps this is a ploy to get you thinking about buying it from them ?

It may just be another option worth thinking about as it may be cheaper in the long run ,
and if they are so desperate for cash
you might get it at a good price ,

As for your letter I think it is great ,
It may be all just plain greediness , so I hope you solicitor can Kick ass ,
I really hate greed , and isn't this just this is so typically classic ? :irked:

Ps , will you let us know how it goes ? :hug: x

.

 

[beautynails]

Hmm your solicitor may want to change how it's addressed, but I think it gets the point across. Surely a 40% rent increase can't be legal.

 

[Deborino]

Hi Carl,

I take it that you are a very prompt at paying your rent, coupled with the fact that you also have a very good reputation and a thriving business (word spreads and your landlord will also know this), I think it sounds like they are trying to make money out of YOUR SUCCESS.

It seems that they are either struggling for money themselves or they can see that you have far too good a business to just walk away from and are playing on this. I feel that they are bullying you and trying to pull ' a fast one'.

It's just from my experience of dealing with solicitors over the last ten years (they charge an absolute fortune and have the knack of wording letters so that a situation can be dragged out - thus making more money for themselves/their firm ) but if I were you I wouldn't pay your solicitor to edit your letter I would have just sent it out to the landlord, copying your solicitor therefore not incurring any charge. Why pay him for something that you can do perfectly well on your own?

Then depending on the response, decide where to go from there. Perhaps if you 'threaten' in the very good letter you have drafted to invlove your solicitor, it may make them think twice. THEY will not want to incurr any heafty legal fees any more then you do.

Solicitors have a good way of replying to a letter asking questions which warrent a reply, therefore encouraging responses back and fourth which are going to cost you money in the end.

Hope this babble helps, but when you are as articulate and literate as you are, I personally wouldn't pay anyone to send your letters out for you. Keep your solicitor informed and copied bu all means but keep the costs down - your fees could end up being way more than the 4% increase 'they are' chancing their arm for'.

Sorry if this is off at a bit of a tangent from your original dilema but it is something to consider.