New Landlord for My Place of Business

[ForumUser]

Hi,

My place of business is in Windsor.

How much for my new landlord raise my rent?

And what are their obligations to me. Ie.snow removal and general maintenance

[SettlementOrgMod]

Hello,

Thank you for sharing your situation and question with us.

It is important that you review and understand your business lease.

You can find some information regarding business or commercial leases on the Canada Business Ontario website in the Understanding your business lease section.

Rent increases

In the past, the increasing cost of operating a building was covered by an increase in rent when the lease was renewed or when a new lease was created for a new tenant. Most landlords protect themselves from unpredictable changes in real estate by including an escalation clause in a lease agreement. The clause allows a landlord to raise rent if the cost of maintaining or operating the property increases. Most landlords will negotiate the escalation clause with you.

Some examples of escalation clauses include:

• Regular increases in rent over the course of the lease- Pro-rated increases in taxes, heat, maintenance and other direct costs- Automatically raising the rent according to the Consumer Price Index (CPI) or some comparable index of inflation
  Note: The CPI generally overstates the impact of inflation, so you should not agree to pay more than a portion of the annual CPI increase, especially if the lease already contains increases for taxes and direct operating costs.

and

Commercial rents are generally measured by the cost per square foot of the space. Many landlords charge tenants separately for heat and electricity. There are at least five common ways to calculate rent, including:

[…]

• Net-net-net or “triple net” leases
  Triple leases pass on all the costs of operating the building, including repairs and maintenance to you as the renter. These types of leases are usually used for industrial properties.

When you sign a lease, it is important to realize that you are entering into a legal contract.

If you have any concerns or issues with your lease, you may want to consider obtaining legal advice.

I hope this information is helpful. Please let us know if you have further questions and if there is any follow up to your question/situation.

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Anna
Settlement.Org Content and Information/Referral Specialist, CIRS
Settlement.Org