Rent Review commercial premises

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    Rent Review commercial premises

    Hello

    I have a small shop that I lease out, but the costs of the loan I have are higher than the tennant is paying me, a rent review was due a year ago and I thought that it was not a good time to burden him with rent rises on top of all the other increases around.

    I have now written to him after assessing the rent locally and said the new rent is to be increased for the next five year by 6% and he has refused to accept this. I feel like giving the keys to the bank and letting him take the pips out of the situation as I thought I was being more than fair by subsidising him and even with a 6% rise i will still be out of pocket by over a thousand pounds a year of costs over income.


    Do you think 6% rise on a 15 year lease ie covering 5 years past and the next five to come is unfair I dont want and cant really afford to go to rent reviews etc at the shop is turning out to be a total mill stone around my neck as it is.

    Is there anywhere I can see a graph of commercial rents so I can gather evidence to support my claim as think he is just trying it on knowing that I dont have the funds to go to law to support my case.


    thanks for any comments

    #2
    In future you need to ask for about double the increase you will accept. Then you can bargain down.

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      #3
      good point JKO

      Comment


        #4
        Your increase should be justified by referring to comparable transactions of similar property in similar location. In order of preference a) new lettings b) rent reviews.

        Graphs or index's or % increase mean nothing and your tenant is entirely justified in resisting arguments on this basis.

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