Disagreement over tenancy agreement clause capping rent increase
The landlord of a six-storey hotel on McKenzie Road, Hoon Kee Meng, lost a court case after attempting to increase the rent beyond what was stipulated in the tenancy agreement. The case arose from a disagreement with the hotel operator, Dash Living, over a rent cap clause in the lease.
Hoon, a son of the late Hoon Thing Leong, the owner of the Kim San Leng coffee shop chain, sought to raise the monthly rent to approximately S$76,000. However, Dash Living argued that the agreement clearly stated the renewed rent should not exceed 10 percent above the current monthly rent of S$45,000, leading to a legal battle.
The dispute centered on the clause in the tenancy agreement, which capped the rent but did not specify the duration of the renewed lease. The court ruled in favor of Dash Living, affirming the rent cap and dismissing the landlord’s proposed increase.
