Rent Reduction

Employer

Hi All,
I`m looking for advice on getting my rent reduced.
My shop is 400ft/sq and €1500 per month - €375 paid weekly by cheque.
recently a lot of premises have come up for rent/lease priced up to €1000 and 1 was even as little as €400/month but its old/damp..
I love my location, it works. Ive got 2 carparks, 4 schools a few businesses and the building is fairly new (10yrs old) so no real problems there.
So I`m not the best at negotiating this sort of thing so Im not sure what approach to take.
I don`t want to threaten to leave, I have a lease until 2013 but the rent is only up for review 2011 (it was 2010 but I foolishly asked for an extention of that because I didn`t want an increase so soon)
I would ideally like the rent to be €300 per week, so do I ask for a meeting, do it over the phone, after hours meeting?
Do I say everyone else is not paying these rates or my overdraft/bills are killing me? Its in his own interest to keep my tenancy but its not really his problem if I don`t make a profit, or increase it due to a rent reduction!
He has a few premises to rent so he must know that no one is taking them anytime soon so any advice on what approach would be great..
Any additional info needed just ask..
Thanks!

antoinolachtnai

Is it an upward-only rent review?

How can you threaten to leave if you have a lease until 2013? You will still have to pay rent.

mcaul

The easiest way is to be upfront about how your business has been affected by the recession and that if the location is not producing a profit after paying yourself a reasonable wage then you need to look at all costs.

Explain to the landlord how you have cut as many costs as possible and that you need to get some form of reduction from him for the next 2 yeasr to ensure the business stay viable.

Give a breakdown of figures between 2006 - 2009 and show what form of discount is required.

The norm seems to be about 25% - 35% in main streets & shopping centres including some of the larger centres.

The agreement is done by way of side letter to main lease - very simple and no need for solicitors.

Employer

Thanks,
Has anyone else renegotiated their rent and how did ye go about it?

hinault

Employer wrote: »

Thanks,
Has anyone else renegotiated their rent and how did ye go about it?

Interesting.

I'm currently trying to renegotiate our annual rent with our landlord (Liam Carroll, company).
We pay €120k per annum rent for a city centre office.

Our business is going very badly - even after sizeable cutbacks in employee numbers/overheads/direct costs.

We're reduced to trying to reduce our office rental charge.
And even that will not guarantee breakeven/profit in 2010.

The letting agent is playing hardball at the moment.
He won't tolerate any reduction downward.
I have explained to the agent that the business is in serious financial straits and that getting something from us, is better than getting nothing and us having to close the business.
His attitude is that the business could fold anyway (which it could).

I have suggested that the shareholders/directors will try to make the business workable and to pay an albeit reduced rent, in order to make it
work.

I await his response.

Employer

Thanks,
Good luck yourself and it would be a shame to go out of business for ridiculous reasons so fingers crossed.
My battle shall begin next week so if anyone else has any advice please throw it out there...