Landlord raises rent with 75%

[Taxempt]

Good afternoon.

I have client in the Flora Centre on Ontdekkers Road, Florida.

The centre itself has been sold and resold a few times and the new owners decided to increase his rent with 75%

This sounds dodgy and he contacted me to ask my advice. I clearly indicated that it is not my field of expertise, but hope some legal boffins on the forum can assist.

Thanks in advance,
Marius du Plessis

[kleva]

I hope there are more answers forthcoming from someone with a legal/property background, but the first item I can advise is that if there is a rental contract (lease) in place, that usually states the limits/maximums (Rental Housing Act of 1999 Chapter 3 Section 5.6).

Even if the contract is from a previous owner, the current owner is obliged to keep the terms and this may be deemed "unfair practice" in terms of the Act (see definitions).

Also look at the complaints section and how to lodge a complaint section of the Act as once a claim is lodged, the rental price HAS to remain locked until a ruling is made (Chapter 4 Section 13.4c specifically mentions "exploitative rentals").

[Dave A]

Unfortunately I'm not sure the Rental Housing Act applies to commercial leases.

In response to the original question, the new owners are obliged to honour the terms of the existing lease. However, when it comes to lease renewal/extension/renegotiation time, near anything could happen.

[Phil Cooper]

I know of a centre where owners hammered up the rentals at renewal by huge percentages - as above.

Result was that people left by the dozens - and the owners could not attract new residents at what they were asking, so were forced to decrease, and decrease, and decrease.

But market is hard, and centre is now a ghost of what it was, with empty shops everywhere.

Cannot be greedy!