Rent increase for local traders

weiss

I'm not a trader or landlord and i'm not gonna mention names, but i'm sure most of you're aware about the bizarre story involving a landlord demanding a 45% increase in rent from the tenants.

Why do landlords prefer to have an empty business space generating no income at all? ..i cannot see any sense in it!

Is the landlord forcing the tenant out in order to sell the property?

Or another reason.. can somebody explain?

muffler

In the current climate and on face value it doesnt make any sense but perhaps there are things happening that we are not aware of.

jimmycrackcorm

There's always two sides to a story. There's plenty of retail space available so you'd have to ask why a trader wouldn't move to another unit elsewhere with equal or better footfall unless that was also in the same cost range.

smashey

jimmycrackcorm wrote: »

There's always two sides to a story. There's plenty of retail space available so you'd have to ask why a trader wouldn't move to another unit elsewhere with equal or better footfall unless that was also in the same cost range.

The footfall would be pretty good where they're at.

weiss

smashey wrote:

The footfall would be pretty good where they're at.

Nice pun there smashey

Seriously though, i have to be cynical and believe the landlord wants to sell, there is no other reason.
Perhaps a neighbour wants to push its way in?

thats my guess, whats yours really?

mrmac

Heard of a similier story happening in Buncrana a while back.
Tenent decided to move, and their business actually improved!
Old unit has been empty since.

sneakerfreak

Some eejits are still in "Celtic Tiger" la-la land.

donegalman1

Apparently the traders in question were open over the weekend so hopefully all has worked out. It appears negotiating through the media has a happy outcome.

Serious issue though and terrible that longstanding tenants had to resort to this.

Permabear

This post has been deleted.

PattheMetaller

donegalman1 wrote: »

Apparently the traders in question were open over the weekend so hopefully all has worked out. It appears negotiating through the media has a happy outcome.

Serious issue though and terrible that longstanding tenants had to resort to this.

Doesn't seem to have worked out yet. One trader was on Newstalk Breakfast show this morning and another was interviewed there on 6-1 news on RTE1

jimmycrackcorm

The paper quotes a rent increase of 47% being asked for which would seem to be crazy to ask for these days, unless of course the rent was 47% less than other rent values in comparison....

ednwireland

jimmycrackcorm wrote: »

The paper quotes a rent increase of 47% being asked for which would seem to be crazy to ask for these days, unless of course the rent was 47% less than other rent values in comparison....

doesn't matter thats what the rent was agreed for, so if harcourt developments think its a great idea to whack up the rents for businesses, which makes them wonder why they bother then they'll have empty units fairly quickly.
same happened in the millcourt (on a smaller scale) her in donegal town, rents went up and as leases ran out shops left no-one left in there apart from the frontage shops. cant understand these companies, surely its better to have businesses in there rather than empty units, but what do i know cos the evidence is that empty units are the preffered option for the owners.

weiss

Has this all got anything to do with section 23 running out in july of last year? or perhaps some other tax relief scheme being abolished?

Yes, i read there was agreement on the increase, but as already argued, a 45-50% increase isn't genius with current economy.

So, either the owners don't need the money, or there is another reason and i doubt they're stupid.