Rent Review dilemna

[deniser]

My landlord has offered me a nil increase rent review - last review was almost 5 years ago - in return for not exercising my break option which I have at the end of next year - meaning that I have another 5 years at the same rent.

We are in an area without good neighbouring tenants and no empty premises so this has got to be a good deal hasn't it? We pay just over £9 per square foot of which 2/3 is retail and 1/3 is storage. I can't find anything comparable.

The only thing I can find it that retail rents in London and the south east have gone up over the last 12 months whereas they have fallen in the rest of the UK. But I can't find any statistics for the whole 5 year period.

 

[vvaannmmaann]

If you are happy with the deal,go along with it!

 

[deniser]

If you are happy with the deal,go along with it!

I'm just worried about the bit in the middle ie. between now and June. If business nosedives suddenly I will be kicking myself for having given up my break.

On the other hand, if the rent is low, the premises should be easy to assign.....

Sorry, just noticed terrible typo - it should say "with" good tenants not "without"!

 

[vvaannmmaann]

Unless he ups the rent for the next tenant?

 

[KM-Tiger]

A second opinion from a friendly surveyor?

 

[deniser]

A second opinion from a friendly surveyor?

Yes I think that's the way to go. For all I know maybe I should be exercising the break and the negotiating a new lease at a lower rent!

 

[deniser]

Unless he ups the rent for the next tenant?

Well he can't if we assign our lease as the rent will be fixed.

 

[vvaannmmaann]

Can you get anything else out of the landlord if you commit? Repair work,new toilets,better heating or insulation?

 

[deniser]

Can you get anything else out of the landlord if you commit? Repair work,new toilets,better heating or insulation?

Was just thinking that......

 

[GeorgeStrait]

I would suggest that the Landlord isn't that confident of re-letting hence why he's trying to pressure you into an agreement now.

I would wait, if he ups the rent take the break and re-negotiate from scratch. Or maybe tell him now you will be taking the break - then see what he comes up with.

 

[deniser]

I would suggest that the Landlord isn't that confident of re-letting hence why he's trying to pressure you into an agreement now.

I would wait, if he ups the rent take the break and re-negotiate from scratch. Or maybe tell him now you will be taking the break - then see what he comes up with.

Yes it will be interesting as they are tough no nonsense negotiators. I think a valuation is the next step....