Landlord Law


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Commercial Renter, Up and Out?

Raising the rent on commercial space

I sublease a portion of my commercial building. I have not raised the rent for five years. The sublease has been on a month-to-month basis for four years. I now feel it is time to raise the rent. If I present the tenant with a new sublease 30 days in advance of the start date, is there any limit on the amount I can raise the rent -- or on whether I can raise it at all?

You do not come across as an ogre; increasing the rent some after five long years seems to be a reasonable move.

When dealing with a month-to-month tenant in commercial space, you can always raise the rent by giving one month of advance notice. Residential space follows the same basic rule, except in areas that still have rent control.

Your gamble is that this particular month-to-month tenant who has served you well may not like the increase and may decide to move out.

Perhaps you can soften the potential blow by discussing the planned increase with tenant in advance, rather than delivering the news in the cold-blooded language of the lease.

That said, there is no legal limit on the amount of increase you can demand. The limit is the marketplace -- and the thickness of your tenant's wallet.

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