I rent a pretty big warehouse to keep all my lawn maintenance equipment in. Our business takes care of the grounds of the rental complex plus the landlords large personal property. Last year he went up on the rent 100.00/month so I decided to make it up by going up 50.00/month on his properties which I havent gone up on in at least 5 years. He paid it. He just emailed a me a new contract with another 50.00/ month increase BUT with a amendment that I can’t go up on his accounts with me! I laughed when I saw it but then it pissed me off. I told him there was no way I was signing unless he struck that amendment from the contract. Waiting on his response. I get so tired of greedy people trying to squeeze every damn dime out of me.

Time to find a new place.

Is warehouse space difficult to find right now in a convenient location?? Can you easily add accounts if you lose this two? I would shop around and see if what he is charging is fair or getting above the market. Don't let feelings get in the way of a business transaction. Do the math and if he is asking too much, show him your facts and refuse the increase or you will go elsewhere.

The old saying "Don't cutoff your nose to spite your face" comes to mind.

What is the time frame of the contract? A contract without a specific time frame is missing a key component.

Renegotiate the price if needed when it's time to renew the contract.

This is a renewal contract. Its yearly and he seems to want to go up every year now. We have been there for at least 10 years. I can absorb the loss of his business if needed but hope it doesn’t come to that. I guess what really gets in my craw is he wants the ability to go up on me but wants to limit my opportunity to do the same thing.

Maybe he thinks the rental price and lawn prices are a package deal. Sounds like you think they are separate. From a business standpoint, if you can barter lawn service for rental expense, then you may not have to pay income tax on the income from your lawn service to him which may be in your favor.

This is the latest corporate trend.....it's no longer enough to be profitable, businesses (particularly larger ones) have to show "growth" year on year (usually 10-15%) otherwise they consider the year a failure. Many large businesses find it difficult to find 10-15% growth from "new business", so they're relegated to one of two options: find "growth" at the expense of your existing customers (jack your prices up every year) and/or at the expense of your employees (increase targets enough YOY to effectively lower commissions paid. Typically it's a combination of the 2...

Unfortunately, this trickles down to small businesses and the consumer over time. It's the world we live in and unfortunately it's not going to change

I know property tax and insurance increase every year or so. You don’t know if you are at market rent or below. The lawn care should be separate from the rental agreement. His costs may have gone up. What the cost per sq ft of warehouse space? Lots of questions you need the answers to before making your decision to stay or go.

Since 2017 our lease has gone from $4,850/month, to this past September over $11K. We are currently looking for a building to purchase, and I believe have found one. These landlords are getting to greedy, people are moving out. Pigs get fat, hogs get slaughtered.

what are you paying per sq ft? what are you paying for outside storage?

Update: He struck the amendment stating I could not increase his lawn care prices. I won’t increase his prices this year but just the fact that he tried to put that in there ticks me off. Gonna look around and see what else might be available warehouse wise.

Most commerical leases for office space go up 3% a year. It's built into the lease. I will say you have leverage, it costs more to renovate a space than to give the current occupant a fair price. Make him sign a grounds keeping contract, and put the same clause in it.

Another option that many folks use is a multi-year contract. That way your rent stays the same and he is assured of fulltime occupancy. If you feel comfortable, go to a 2-3 year contract. Single year leases almost always go up due to insurance, liability, maintenance costs, etc. By the way, your fees should also go up yearly to cover your increased expenses.

I have never really understood this line of thinking. Why would you not expect someone to charge what the market allows them to? The entire purpose of having a business is to make as much profit as possible. If you aren’t charging what the market allows you are practicing bad business. If you can go up in his lawn maintenance then do it.

It’s ok for the landlord to up the price to meet the market. But the landlord crying to the tenant that provides a service to him about freezing their prices is a dick move by a candy ass. People like that think they have a paper butthole that wipes itself.

Seems like a pretty ballsy move to me. I wouldn’t say dick though. I was mainly referring to the OP not going up on the landlord’s lawn maintenance.

Wrong! This is Aldeer where making profits is considered greedy!

As a owner of 2 small businesses Im all for making a profit without gouging people. It can be done. But theres no way in hell Im signing a contract that says as a business I forfeit my right to increase my prices.

purchase some land under a different llc and rent from yourself. win win

And thats why you’re a millionaire!!