QLD Lease renewal, rent increase

Discussion in 'Commercial Law Forum' started by L Perry, 30 July 2018.

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  1. L Perry

    L Perry Member

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    HI. Have leased premises for 13 years. Previously 3 x 3years, but moved to 6 monthly, with options for renewal, as was considering selling business.

    Have asked to go back to 3years x 3, rather than 6 monthly, but the increase in monthly rental was high (over 11% and more). Thought I would be better off exercising the 6 monthly option on the existing contract. But the landlord now wants to increase the monthly rate by 27.5% which he describes as 'Market Rent'.

    I have contacted agents for other premises and have been quoted a much lower rate. I could move, although I have significant investment in fitout, etc. So not the preferred option.

    Can the landlord charge whatever he likes? If I am simply exercising an option which has a stated 5% increase per signing (6 months), can he change the terms?
    Thanks
     
  2. Rob Legat - SBPL

    LawTap Verified Lawyer

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  3. Adam1user

    Adam1user Well-Known Member

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    I think this one is obvious, the contract should state about the rental increase rate and how often, most commercial contracts that I have seen have the clause in them, if not, then see which Act or Law that applies (As Rob asked).
     
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