Unnecessary Rent Gouging?

[LauraatATA]

Good morning,



We have owned a small daycare in a plaza for about 5 years. Unfortunately when we purchased we may have chosen the wrong path to ownership - hindsight and all that. Our rent is absolutely ridiculous compared to other businesses and what it should be and seems to be set based on the landlord's unstandardized methods. Had we purchased outright, we'd be making a profit but we were never fully offered that. We're not the only business in the plaza in this predicament but we are the only one who is now forced to sell as a result.


My parents own the business and were both teachers; my sister is an ECE. I hate to see something that they wanted and loved having to be sold because of a landlord that refuses to treat every tenant equally and offer any options out of this insane situation. It seems, in talking to other tenants in the area under his control, that we're now paying way too much and paying over and above what is actually necessary. Is there any sort of person or group that can advocate for us or assist so my family can save the business before the sale goes through? Like I said, I hate to see this happen to the people that it matters the most too. And I would hate to see how the new owners may negatively affect that children and families involved.

Thank you for your time and assistance,
Laura Fry

[Harold Mansfield]

This situation sucks. Sadly I've seen it before with pizza, and donut shops, dry cleaners, and bars. The landlords create arbitrary rates based on what they perceive as low overhead and high profit and not based on market rates based on square footage and resources.

This seems to be a clear case of price gouging.
Have you reached out to any local legal help for tenants? Maybe the local city council or officials?

Is this guy trying to clear the place out so that he can sell it?

Unfortunately I'm not a legal expert and can't help advocate for you, but I'm sure others here will chime in.

[Fulcrum]

Had we purchased outright

I'm confused with what you are referring to with this.


Is there any sort of person or group that can advocate for us

Probably not, aside from your lawyer. What does the lease say?

[turboguy]

I would be surprised if there is much you can do. Rents are pretty much up to the landlord. He can charge as much or as little as he wants. If he charges to much your option is to find someplace else to rent that is cheaper. If someone is asking more than a property is worth typically he will end up with an empty property and no rental income. It sounds like you had an option to buy at one point and probably should have done that.

[tallen]

Can you re-locate the business rather than selling it? You are just renting the space, right? What are the terms of your lease, can you get out of it?