I have a tenant who took out a fixed term 10 year contraction in 2012 (commercial). In 2019 tenant wanted to retire early so after some consideration we agreed to not hold the tenant to their contract. After consulting solicitors, at our own expense, the tenant then changed her mind and decided she couldn’t afford to retire at that time and extended the fixed contract until 2025.
She has now decided to retire again and actually has and wants to stop paying rent. I am very reluctant to accommodate her. From day one, the rent reminded the same with the understanding it was set at that rate because of the longevity of her contract.
What are people’s thoughts on this situation. Your advice is welcomed.
My view would be try to agree an early release fee first. An unwilling tenant can be a difficult ride.
The fee should be substantial. Though make clear in no uncertain terms that if not agreed then full amount of rent will be sought aswell as recovery costs.
I rent out commercial and have no problem finding tenants , not that I have had to recently. Is it a shop? Easy to rent again? at a higher rent? If Yes .Let her go and out quick before she dithers again
Thanks Colin, but it would be quite difficult to rent out again because of location as it is in a very small town. Only interest is in the purchase of it to convert into a home. It is a converted barn.
You have been very accommodating the first time. You agreed the fixed low rent based on a long tenancy, let her out and then agreed a new deal. She needs to realise the knock on effect and consequence of breaking the 2 way agreement.
I wish my bank would let me out of the ten year fixed rate deal i had signed without the huge early redemption fee (hyperthetical).
I would however take the amount of time she has been there into account and if a good tenant etc.