Purchasing a business and we just got the draft of the new lease.
The previous owner was just about to sign a new lease at $49,775.88 per annum + GST, the lease the landlord has sent us is for $58,807.80 per annum + GST and he wants to up it by 3% + CPI each year after that.
This is the first draft so I guess we should have expected some haggling would be needed, but I thought we were going to take on the lease that the current tenant was going to sign.
Anyway my question is for all the commercial landlords or tenants.
Is this rediculous increase normal?
Does everyone try and get huge rent increases when new people come in?
I was thinking of countering with a $45k offer, I may as well go to the other extreme.
What is the average rent increase written into leases? CPI?
I'll go and see the accountant next week, have a chat with him.
On Monday will talk to the conveyencor and tell her the lease sucks.
I'm off to drive around the area and see what else is up for lease or sale, just checking out the options.
Cheers
quoll
The previous owner was just about to sign a new lease at $49,775.88 per annum + GST, the lease the landlord has sent us is for $58,807.80 per annum + GST and he wants to up it by 3% + CPI each year after that.
This is the first draft so I guess we should have expected some haggling would be needed, but I thought we were going to take on the lease that the current tenant was going to sign.
Anyway my question is for all the commercial landlords or tenants.
Is this rediculous increase normal?
Does everyone try and get huge rent increases when new people come in?
I was thinking of countering with a $45k offer, I may as well go to the other extreme.
What is the average rent increase written into leases? CPI?
I'll go and see the accountant next week, have a chat with him.
On Monday will talk to the conveyencor and tell her the lease sucks.
I'm off to drive around the area and see what else is up for lease or sale, just checking out the options.
Cheers
quoll