Lease increase

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Lease increase

We are an auto repair shop with a subtenant. Per the lease we were supposed to
increase his rent every year but no one ever did. Now the owner wants me to bill
him for increases going back to 2013. I don’t think it is legal. Can you please
advise?

Asked on November 7, 2016 under Real Estate Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

A commercial tenancy may be increased ANY amount in a year: there are no protections (other than any which may be contained in a lease; since leases are contracts, any limitations or restrictions in them are enforceable) for commerical tenants. So you can increase the subtenant's rent when the current lease expires as much as you want or need to...and your own rent can be increased, on your lease expiration, as much as the property owner wants.


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