High rental costs forced the closure of the Bao Bei restaurant in Medellín. In the Provenza sector, some traders fear that the same thing could happen to them: that the owner of the premises will exorbitantly increase the cost of their rent. Is this possible?
The reason for the Asian restaurant’s closure was primarily because the owner of the eatery asked Bao Bei to reduce the payment from $3,400,000 to almost $7,000,000 because “the area was being gentrified a lot.”
Federico Estrada, manager of La Lonja, clarified that in the commercial lease agreement, after two years, the fee may increase beyond the amount agreed in the contract.
However, according to the same expert, the parties would have to agree on this. If this does not happen, “they must opt for a fee regulation procedure in which the amount to be paid is determined by a judge with the involvement of an expert.”
The owners of Bao Bei have decided not to go to the authorities and will therefore close the restaurant’s doors on November 25th.
If you are a business owner and plan to rent space, it is important that the deal is sealed with a commercial space rental agreement.
When can you ask about the commercial space?
–If the tenant has breached the contract.
–If the owner needs it for his own room or the furnishing of a facility that belongs to him.
–If the property needs to be remodeled or repaired. (In any case, preference will be given to the last tenant when the premises are released again.)