‘We’re being bullied into signing council leases’
BUSINESSES JOINING FORCES AS RENTS AND SERVICE CHARGES RISE
BUSINESSES operating from council-owned industrial units say they are being “bullied” into signing longer leases as rents and service charges rise.
Firms who have used units in Northern Court, Basford, for years are concerned that costs are going up just as businesses struggle with the aftermath of the pandemic.
They have joined forces to make their case to landlord Nottingham City Council.
Gary Kirk, projects director for Ward Demolition Services, says he feels they are being “bullied” into signing a new contract with additional costs added on.
They have been given a “take it or leave it” deadline of August 31, he claims.
“We’ve been here for 15 years and the council has been very poor in maintaining the area,” Mr Kirk said.
“I’m OK with them charging us more for rent but what I’m not happy with is them not being very clear, and evasive.
“I’m concerned with the service charge. They want us to pay for the insurance for the buildings. They are charging us more but giving us nothing.
“The previous lease was every six months. This is the big bugbear. This new lease will be six years. If our business gets better or worse, they expect us to keep paying it or find a new tenant.
“But we aren’t an estate agent. Why should we have to be forced to do that? We all feel like we’ve been backed into a corner.
“I do not mind the rent increase. I get that. It is the charges that are coming that they will not tell us about.
“They mentioned security fencing and CCTV and that’s not cheap.”
The new contract, seen by the Post, says service charges will go towards the cleaning of common areas, landlord management charges, contributing towards building structure insurance and landscaping as well as lighting and security of common areas.
Mr Kirk fears building insurance will not be cheap and that the council is not allowing them to decide which insurance provider is chosen.
Ian Woodward, of Flow Tronix Limited, says his rent had gone up 27 percent and that, for some businesses, it had increased 40 percent.
He added: “Our argument is that we are not against rents going up, despite some of us getting an increase of 40 percent. The cheek of it is the service charge.
My rent has gone up by £2,000 [per year].
“They talked about gardening services but I’ve got a concrete path. I’ve got no garden. I feel like we cannot come to a compromise and the one that none of us agree with is they want us to sign a six-year lease. “We are going to find a solicitor and see where we stand.” Tony Hook, who works at J&S Joinery Manufacturers which provides services for Nottingham City Homes, says its service charge bill stands at £1,000.
The firms all say the hike could not have come at a worse time, given they are “only just recovering” from the pandemic.
A city council spokesman said: “Tenants at Northern Court in Basford have benefited from rents well below market average for many years. “While we have delayed for some time, we now need to adjust our rents for industrial units like this in line with market prices and, while some of the tenants have already agreed to the new terms, we understand each business is different and are continuing to speak to others.
“We have been providing support to local businesses throughout the pandemic, with some impacted more than others.
“We will always endeavour to find ways to help ensure payments are affordable and are speaking to tenants about this, including offering staged increases where appropriate.
“We are also seeking to work with the tenants to understand and address the matters raised in respect of the service charge.”
The previous lease was every six months. This is the big bugbear. This new lease will be six years
Gary Kirk