Lease agreement help?

The building I lease a shop at has recently been sold to new owners. I had a 4 year lease with the original owners (3 years still left). I just want to check something with regard to the rental (at least confirm if my interpretation of the legalese is correct).

The lease agreement states the following with regard to rental:

The rental shall be $xx.xx per month.
Notwithstanding the aforesaid the Lessor reserves the right to increase such rental with a reasonable amount after expiration of a period of 12 months from the commencement of this lease. Such right shall be exercised only once by the Lessor. At least 30 days prior written notice of such increase shal be given to the Lessee.

Now if I understand this correctly it means that the rental can only be increased once during the 4 year period. Is this correct or am I misreading something?

 

That is what is sounds like, based on what you have shown here.

 

All the other clauses under rental only involves info on where rent is to be paid, arrears to be charged at 25% after due date, and that the lessee shall not deduct the deposit paid from rent... I can't see that they will affect anything.

 

That's the way I read it too but, of course, I'm not an attorney

 

Well, finally after putting it off month after month the new owner of the building has given me a letter stating what the new rental will be and a new rental contract to sign.

I think I'm royally screwed, because the rent has been doubled! I'd be hard pressed to afford the new rent in addition to all my regular expenses, since the sales volume hasn't increased (in fact it decreased considerably).

Also, if I'm not mistaken, if I sign this new contract the old one (which is still valid till 2009) will effectively be canceled. Can anyone confirm this?

 

Why do you need to sign a new rental agreement? He is increasing the rent according to the existing agreement right?

The question is: Is doubling your rent a "reasonable" increase. Well, that would depend on the market rates in your area. If a doubling puts it inline with other similar building then it could be considered reasonable. If, however, after the increase your rent is much higher than comparable buildings it would not be allowed under the clause allowing "increase such rental with a reasonable amount".

See a lawyer.