Legal Question in Real Estate Law in Illinois

Re: is there any regulation on raising rent by landlord when you renew lease?

Yes, a landlord may raise your rent. Look at your lease carefully and determine whether anything therein would protect your mom. If you can find nothing and the location is vital to the business, I would suggest trying to compromise with your landlord. It is unfortunate, however, when purchasing a business, be sure to discuss future rental issues at that time so as to avoid these problems in the future. I know hindsight is easy.

Re: is there any regulation on raising rent by landlord when you renew lease?

Your mother has entered into a Commercial Lease Agreement pursuant to the purchase of a business at that same location. The terms of the Commercial Lease Agreement must be followed as to any renewals. If the Commercial Lease Agreement does not contain a formula for rent during the renewed term, then the landlord would be free under those circumstances to suggest a 13% increase in rent and the tenant is free under those circumstances to refuse to renew the lease. I am wondering whether the purchase agreement for this business contained any representations or contingencies involving your mother's ability to negotiate a suitable renewal of the existing lease agreement.

The bottom line is that the purchase documents and existing lease must be reviewed by your mother's attorney to determine whether she has any right to demand a renewal of the lease for less than a 13% increase.

Best regards,

Michael T. Mahoney

Re: is there any regulation on raising rent by landlord when you renew lease?

Let's see: we live in a free economy where people deal with each other at arm's length. The opposite of this free market philosophy would be communism. Additionally, someone once said that in business, you don't get what you deserve, but what you negotiate. It would thus appear that if your mother can't negotiate more favorable rent, that she has the option of moving, and the landlord has to then rent to someone else.