Small business owner having a dispute with Rent Increases with the LandLord. What are my Legal options?
We have a business in a small commercial lot. And in that lot, there are 6 other businesses that are running and 2 are vacant. Our lease has expired and the landlord wants to raise the rent. So we have not signed a lease and instead we have been paying the original rental payment every month instead of the inflated amount the landlord expects. This has been going on for 4 months and every month the landlord just adds on the difference of what he expects to get, while we just keep paying him the original rent amount. Since there is no demand for new businesses to enter, I’m assuming that is the reason why he isn’t taking any steps further for the eviction process or maybe he is afraid someone might leave thus losing further income on his property. So my question is: Will I be legally liable for the total amount that the landlord is trying to get from us? If I decide to move, can the landlord take legal actions and collect the money from me.
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Tags: 4 Months, Landlord, Small Business Owner
rent property | , 8 Nov 09
By wazwondring, November 11, 2009 @ 7:50 am
The answer depends on the laws in the area that you are located, as well as the contract that you have with the landlord. You should consult a lawyer in your area.
Generally speaking, most rental lease agreements create a month to month tenancy. Meaning rent is paid monthly. Usually leases are for a time certian, like six months or one year. In most cases, leases of one year or more must be in writing to be valid. Once the lease period is up, the tenancy continues on a month to month basis. Landlords are usually restricted from raising the rent by either the lease agreement, or sometimes by statutory provisions. In commercial leases, the lease agreement will usually spell out the terms for raising rent and will describe what notice to the tenant is necessary (reasonable notice of the increase is always required, it is usually 30 to 45 days for a monthly tenancy). A renter’s choice, once the lease term is up, is to continue the tenancy at whatever rental rate the landlord sets, or move out.
To answer your question, you may be liable for the difference if the landlord provided proper notice of the rental increase. If you didn’t agree with the increased rent, you should have given notice that you were going to move out.
Good luck!
By fighting118, November 11, 2009 @ 10:05 am
It depends upon the language in your original lease. Many leases provide that when the lease expires, you automatically become a month-to-month tenant and are no longer guaranteed a particular rental rate.
However, some leases automatically expire at the end of the lease term and have no renewal provision. If that is the case, your landlord may have unknowingly re-upped at the old rate by accepting your rent payments.
Of course, the laws vary slightly from state to state, so you should consult with an attorney where you do business. Either way, though, your landlord would have to sue you to get anything and that won’t happen until the dollar figure gets significant.