I am seeking an understanding of why upwards-only rent reviews are, the phenomenon that they seem to be in today's Ireland.
Surely if a landlord leases out a building to a tenant, then they agree on a price and all happy. If the landlord keeps upping the rent, the tenant will either move or go out of business. Not in anybody's interest, I would have though. So, why are landlords moving to put their clients out of business by only reviewing the rent upwards? Surely in any agreement between two parties, they can agree to tear it up and start a new agreement? So that if the old one was too onerous, they can work something out.
Here's what I think it might be, but please correct me if I'm wrong! The leases are signed with a clause saying that the rent will be revised upwards every x years by x amount. The tenant does not agree to tear up the lease as they would then have no garauntee that they'd be allowed stay. So they're stuck having to agree to an upwards rate spiral. If this were the case though, it would be in a landlord's interest not to write the lease that way as they are ending up with empty properties all over the country.
If anybody could help me understand the issue I'd be most grateful.
Surely if a landlord leases out a building to a tenant, then they agree on a price and all happy. If the landlord keeps upping the rent, the tenant will either move or go out of business. Not in anybody's interest, I would have though. So, why are landlords moving to put their clients out of business by only reviewing the rent upwards? Surely in any agreement between two parties, they can agree to tear it up and start a new agreement? So that if the old one was too onerous, they can work something out.
Here's what I think it might be, but please correct me if I'm wrong! The leases are signed with a clause saying that the rent will be revised upwards every x years by x amount. The tenant does not agree to tear up the lease as they would then have no garauntee that they'd be allowed stay. So they're stuck having to agree to an upwards rate spiral. If this were the case though, it would be in a landlord's interest not to write the lease that way as they are ending up with empty properties all over the country.
If anybody could help me understand the issue I'd be most grateful.