When faced with a commercial landlord’s request to increase rent, here are some steps you can consider taking
- Review the Lease Agreement:
Carefully review your lease agreement to understand the terms and conditions related to rent increases. Pay attention to any clauses or provisions that outline the landlord’s rights to raise the rent and the procedures that must be followed.
- Assess the Market:
Research the current market conditions for commercial properties in your area. Compare rental rates for similar properties to determine if the proposed increase is in line with market trends. This information will help you evaluate the reasonableness of the landlord’s request.
- Communicate with the Landlord:
Initiate a conversation with your landlord to discuss the proposed rent increase. Seek clarification on the reasons behind the increase and any supporting documentation or market data they may have. Express your concerns and negotiate if you believe the increase is unjustified or unaffordable.
- Seek Legal Advice:
If you are unsure about your rights or the legality of the proposed rent increase, consult with a solicitor who specialises in commercial property law. They can review your lease agreement, assess the situation and provide guidance on the best course of action.
- Consider Alternatives:
If the proposed rent increase is unreasonable or unaffordable, explore alternatives with your landlord. This could include negotiating a smaller increase, requesting additional lease terms or concessions, or proposing a longer lease term in exchange for a more favourable rent.
- Document Everything:
Keep a record of all communications and correspondence with your landlord regarding the rent increase. This will be useful if the matter escalates and legal action becomes necessary.
- Seek Mediation or Arbitration:
If negotiations with your landlord are unsuccessful, you may consider engaging in mediation or arbitration to resolve the dispute. These alternative dispute resolution methods can help facilitate a fair and mutually acceptable resolution without resorting to litigation.
- Evaluate Your Options:
If all attempts to negotiate fail, you may need to assess your options. This could involve considering relocation to a more affordable space, renegotiating lease terms, or seeking legal remedies if you believe the rent increase is unlawful or in breach of the lease agreement.
Remember, each situation is unique, and the best course of action will depend on the specific circumstances. Seeking professional advice from a solicitor experienced in commercial property matters will provide you with tailored guidance and help protect your interests throughout the process.
Alexander JLO’s commercial property lawyers and skilled in providing advice to commercial tenants on rent reviews. Why not call us on 020 7537 7000 or email peter@london-law.co.uk for a free, no obligation consultation and see what we can do for you?
This blog was prepared by Alexander JLO’s senior partner, Peter Johnson on the 22nd February 2024 and is correct at the time of publication. With decades of experience in almost all areas of law Peter is happy to assist with any legal issue that you have. His profile on the independent Review Solicitor website can be found Here