Ten thousand-burger rent rise

[Ivan McIntosh]

I wonder from the article whether the existing rent was set at a concessionary level and is now simply reverting to market. There is nothing about the reason for the increase, and the size of it looks suspiciously like a catchup. In any event, the procedure is to follow the lease provisions. There will be a mechanism to work through a dispute.

The block is prime redevelopment land, it would not surprise if the landlord would be happy to see the tenant walk.

[drelly]

I've seen landlords do this before to have an easy start to a new business. They let the tenant fit the premises out, establish a trade, then end the tenancy and open an identical business that they started.

[PTWhatAGreatForum]

I wonder from the article whether the existing rent was set at a concessionary level and is now simply reverting to market. There is nothing about the reason for the increase, and the size of it looks suspiciously like a catchup.

I've seen landlords do this before to have an easy start to a new business. They let the tenant fit the premises out, establish a trade, then end the tenancy and open an identical business that they started.

Always plenty of excuses for errant landlords here.

If you read the linked article, you will see the rent has been independently assessed at $83,750.

Abhari commissioned an independent rental valuation from Prendos New Zealand after learning of the planned rent rise.

The March assessment, which compared the 131sq m site with other rented real estate in the Auckland CBD, came back with a recommended annual rent of $83,750.
Abhari said he was prepared to pay the $8850 difference between his current rent and the assessment's figure and had made that clear to his landlord. But he would not agree to the offer.

[Ivan McIntosh]

Yes, but all due respect to commercial valuers, it is remarkable how their view will accord with that of their client's interests. If the article referred to a valuation from an independent party paid equally by landlord and tenant I'd be more swayed. A valuation commissioned and paid for by one party doesn't do much for me until you've had a look at it and can see what methodology they are using and see details of the "comparable" leases they are referring to.

Having said that, at least they have one.

[PTWhatAGreatForum]

His biggest problem is he is someone else's *****. To be frank, freedom is not total, but ownership is a far superior form of *****iness. He is a slave to employees, long working hours and a landlord who wants an outcome which will kill his business and leave his employees looking for a new job.

I long ago decided I would keep my business at a certain size - ie: one which I can manage autonomously. We still have to deal with stuff (R&M), and pay "the man" land tax etc, but I am now looking forward to building my new commercial building when I can afford it. Until then, there is no shortage of space in our existing building, the oldest part of which is pushing a century.

I am very much on the same page (as the property investors I know) that ownership is key.

[Lovethiscountry]

Current rent $74,900 (been there three years)
Landlord wants $185,524.
Prendos rent assessment (paid for by tenant) $74,900
Difference to asking rent $110,624
Given Prendos has a credible reputation I wonder how the landlord is going to justify the difference at arbitration