Jun
05
need help! is it norm for retail front landlord to raise rent 3% every year on 3 year lease?
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i am about to rent a retail location but landlord wants me to sign a lease, agreed to $3300 per month, then when i see contract he says the 2nd year it will be $3400 per month and 3rd year its $3500 per month. is he trying to ***** me or is this normal?? please help. i thought i would pay the $3300 per month for the entire duration of the contract
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3 Comments
June 8th, 2010 at 6:59 am
Retail locations are allowed to raise your rent every year even though you signed a lease - if it’s in their lease - it’s legal - if you are not happy with the terms, renegotiate or find another place
June 9th, 2010 at 5:46 pm
I don’t know what is normal in your area. Before signing it, call a property management company/commercial real estate company who has their for lease sign up on buildings in your area. Tell them you saw their ad and say “by the way, does the rent go up yearly?” or something like that. Typically the rent is decided on $/sq ft, so, I don’t know how he calculated $100. Read the entire contract carefully before signing it.
June 11th, 2010 at 8:25 am
This is known as what’s called an escalation clause.
This is totally negotiable, and you have the right to say, ‘no’, but again so does the landlord.
Imagine it this way, the cost of everything for the property you are renting is going to increase next year… taxes, insurance at this rate, even basic common area electricity…
The point is this is why they are increasing your rent year over year. Another popular increase method is by simply increasing rent according to a published index like: COLA.