rent reduction plea

agfreya

I am a sole trader witha rented shop on a main street.I am struggling to keep going through the down turn. My pleas to the landlord for a rent reduction were ignored for months on end. Finally I was forced to reduce my standing order to his a/c. The alternative was to default entirely. That action resulted in threats of legal action from his solicitor. I tried to arrange a meeting with the landlord but he refuses to even speak to me by phone. I've written to him to say I can have some of the arrears for him if he will call to collect my cheque but ther is no response. All I get are letters from his solicitor saying I am to deal only through him. My last rent review five years ago was negotiated directly with the landlord.
I sent my landlord some turnover figures to illustrate the extent of the drop in sales but now the solicitor has them and is looking for three years full accounts.
This same solicitor is the owner of at least six(that i am aware of) shop units in the immediate vicinity of my own and has refused rent reductions to his hard pressed tenants already -he also felt qualified to tell tenants they weren't running their businesses properly!!
My objection- I think my accounts as a sole trader are between me and the revenue.
Am I wrong in seeing a very real conflict of interest here? Am I banging my head against a brick wall even if I do submit accounts?
Any ideas ?

mcaul

any landlord who refuses to enter into rent reduction negotiations is utterly stupid.

If you closed your store tomorrow and handed back the keys #1 It will stay vacant for the next 9 months & #2 he will rent it approx. 40% below the rent paid in 2007.

Tell him to get real and ask for arbitration.

As for giving him your accounts - this would be normal if you were looking at a new unit, so I can't see any harm in it.

Bandara

Giving your 3 year accounts is just going to give him the annimution to say how much you have made over the past three years and that you can afford the rent.

Landlords often fail to grasp that the rent reviews are for the coming 5 years and anything that happened before is irrelevant. They base the future rental figure on the past success, despite the past success being unobtainable in the current climate.

Have you considered moving a few doors up the street? You most likely will get a better premises for less money. Will freshen up your business also.

Good luck.

HT

Eoineo

Definite conflict of interest.

What sort of a lease are you in and when is your next break clause?

gavney

Hi OP, you might refer him to the article on Sept 6 in The Sunday Business Post.

According the this

"A survey of Retail Excellence Ireland suggested that of the 58 centres around the country, 29 had given reductions in some form"

If you want, I can PM the article to you

Are you based in Dublin? I work with a company with 3 shops off oconnell st. I've compared with some other shops, and it seems we are getting a great deal on two of the shops. I can give you some details, just to show you how shocking the difference in rent is between shops that should be the same, if you PM me.

Mr Clonfadda

Hi OP

I looked for a temporary reduction in Rent at the start of the year and landlord wasn't interested in talking. It was only when i had agreed rental of a new premises that they were interested in talking. Can you threaten to move?

I wouldn't give my accounts to anyone that i didn't have to.

Good luck

stepbar

At the end of the day a Landlord is not willingly going to agree to a rent reduction. You must be prepared to walk. However I suspect that you have no option but to stay put. Your negotiation power is weak, however, of course it's not in the landlords interest to see you fold either.