Not surprisingly, many landlords will consider increasing the cost of renting their properties
But what does this mean for you and your salon rent?
What rights do you have?
Here’s everything you need to know!
Make sure you have read your contract
Do you have a fixed-term lease?
If so, your rent can only be increased if you agree to it, if you have a clause in your contract,
such as rent review or sign a new one.
In addition, if you pay your rent on a weekly or monthly basis, then legally your landlord
must give you one month’s notice before raising the rent.
What are your options?
When the landlord, notifies you of a rent increase for your salon business,
the reasons given should be transparent and reasonable.
If you have questions about the increase, you can ask them how they calculated it.
You should also make sure that their calculation is based on the current/allowable use of the property and not on what they predict they could achieve from a different use.
After that, you have several options.
First, you can agree to the rent increase – but always make sure you get the new value in writing.
If you pay the higher rent, even once, this counts as acceptance of the new fee.
It is worth noting, however, that you do not have to agree to the new, higher price,
you can negotiate it or appeal it in a court of law.
Negotiation
If you decide to go down the path of negotiation, try to gather
any evidence that could support your counter-offer.
For example, have you made any improvements to the property that could have increased its value?
Has your landlord fulfilled all his/her duties during your tenancy?
Remember, most landlords want a tenant who is successful and likely to stay in the property
for a long time, so you may also benefit from highlighting the positive aspects of your lease,
such as paying your rent on time and your impact on the community.
As part of this process, you could also negotiate a gradual increase,
which is when the rent increase is applied gradually over time.
The advantage of this is that it can allow you to plan and adapt to this increase.
If you choose to appeal the rent increase in court, the procedure is free of charge.
However, make sure you don’t stop paying your current rent, otherwise you will have rent arrears.
If this happens, your landlord may try to evict you if you follow the correct procedure.
What if there is no deal?
If you cannot agree on a new price, you may be issued with something called a Section Notice 21
and be asked to leave.
If this happens, you don’t have to leave immediately.
In fact, you usually have a few months.
The rising costs of doing business will undoubtedly be a stressful time for many,
however the most important thing when negotiating the rent of your salon is to weigh your options,
instead of rushing into anything – and if in doubt, seek extra help.
