[Question] Shopping centre rental

[Kirsty]

Hi,

I have 3 shops in 3 different shopping centres. I have never had issues before, however one specific landlord has just put the rent up in my biggest shop by 45%!!!
Surely there is some sort of law against doing something like this!?

He also refuses to give me a copy of my lease until i have paid 3 months deposit (when i initially signed the lease I was only required to give 1 months rent as a deposit, which I did) I have only ever signed one lease, which has now expired, i have not been asked to sign anything else, he assures me there is a lease in place, but as i cannot see it I dont know for sure.
I also requested a month to month lease and he said he will then put TO LET signs in the shop window.
The shop has been in that shopping centre for over 10 years, the anchor store, pick n pay burnt down last year (this was the only attraction to the shopping centre) and he still puts the rent up!
Please advise if he can do this? Does the tenant have any leg to stand on? I cant check any terms with no lease.

Thanks so much for your help.
Kirsty

[garthu]

Hey Kirsty, welcome. Up front i'm not a commercial expert in any means however almost everyone will tell you that you must have a copy of the lease before taking any decisions or moving forward. I think i would start by getting my attorney to draft them a nasty letter requiring the copy lease within a number of days. - To take that line though could have reprocutions with them making things difficult for you. But I certainly wouldn't give them a cent without it - be clear please thats my opinion and how i would personally handle it. Wait for some other responses for there opinion then add then up!!

On another side, do you really need that store if the anchor isn't there?? Is it still viable without them.

[garthu]

Oh PS! Also once you have decided that requesting the lease verbally has no further gain, do EVERYTHING from that point in writing CAUTIOUSLY (can also be used against you!) It has saved me many times from volatile sitautions

[Dave A]

My knee jerk reaction is a 45% increase is basically a request to move. But there could be valid reasons, especially after ten years in the same spot. For example, your current rental might have got seriously out of line with going rates in the area and the landlord has picked this up.

I, like Garth, would be concerned about the loss of the anchor tenant. If the lease is up for renewal, now is a good time to take a look at other rentals in the area and if it's better to move, make it your decision. You'll want to promote your new venue while you're still in the current store

On lawyers letters, I can't see any harm in it, especially when it comes to getting a copy of the existing lease. It shows you're not to be messed with, and probably a very small investment in the grand scheme of things. A good lawyer will not be rude, just firm.

And if anything it will improve your posture if/when you get to a negotiation stage. To twist a rather famous quote by Eleanor Roosevelt - You can't be held to ransom by your landlord without your permission.

[Kirsty]

Thanks!
He is putting everyone's rent up by 45% when their lease comes to an end. Even if they have only been in the shopping centre for 2 years.
I will go ahead and start looking for new premises.

Thanks again for your help!!

[garthu]

If thats your decision and you know its a good move (which strikes me is) congratulations! Happy hunting. Funny we were just referring to landlords the other day and what they can get up to. Sounds a little like he is trying to recover from the loss, maybe can't blame him but i think he could end up with less

[Dave A]

He picked a really good time in the economic cycle

May you find a bargain deal that works for you!

[Kirsty]

One last question,
Anyone know of any good lawyers? that could do a simple letter?

Thanks!

[Dave A]

Where abouts are you. Ideally you'll want someone reasonably local.