Small Business - Landlord Increased The Rent by 30%
Last edited 26/03/2019 - 14:56 by 1 other user
TL;DR Landlord on commercial lease wants to increase the rent by 30% and disguise them as "outgoings fee",
I need your option on our current commercial lease (NSW). We are in supply&install business and leasing a duplex workshop, it is about to expire and our landlord is proposing a rental increase by 30%.
There is an underground car park and there is a space without parking line that we sometimes use as storage temporarily.
Currently: We are paying $7k rent monthly (4% increase every year) + aircon maintenance + shared electricity on common areas with the neighbor (parking lights etc).
Proposed new rent:
- Rent 6.8k plus
- Storage fee 1.2k (they want to built a cage in that area I mention above and charge us)
- "Outgoings" fee 1.2k to cover gardening, repairs & maintenance plus "management fee" to manage these outgoings (I calculated it is around 5% out of total rent)
So in total the landlord wants to increase the rent by $2.2k (30%), not sure the legality of their proposed charges? Especially the "outgoings" part. Not only the landlord wants us to cover the repairs & maintenance, but they also want us to pay management fee as well. How absurd is that?!
Moving is an option but currently it is not a good timing to leave, not only it is costly but it will disrupt the business. I am not sure about commercial lease, but surely they can't just increase the rent by 30 percent like that?