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Commercial Rent Increase Letter Template for United Arab Emirates

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Key Requirements PROMPT example:

Commercial Rent Increase Letter

"I need a Commercial Rent Increase Letter for my retail tenant in Dubai Mall, notifying them of a 5% rent increase effective March 1, 2025, ensuring compliance with RERA calculator guidelines and Dubai tenancy laws."

Document background
The Commercial Rent Increase Letter is a crucial document in UAE commercial property management, used when landlords wish to implement a rent increase for their commercial properties. It must comply with UAE federal laws and specific emirate regulations, particularly RERA guidelines in Dubai and similar authorities in other emirates. The letter should be issued within prescribed notice periods (typically 90 days) before the lease renewal date and must adhere to maximum permitted increase percentages as calculated by regulatory authorities. The document serves multiple purposes: it provides formal notice of the increase, establishes legal compliance with local regulations, and maintains clear communication between parties. Landlords must ensure the proposed increase aligns with official rent calculators and market conditions, making this document essential for proper commercial property management in the UAE.
Suggested Sections

1. Sender Details: Full legal name and address of the landlord/property management company

2. Date: The official date of the notice

3. Recipient Details: Full legal name and address of the tenant

4. Property Reference: Clear identification of the leased premises including unit number, building name, and complete address

5. Current Lease Terms: Reference to the existing lease agreement including current rent amount and term

6. Rent Increase Notice: Clear statement of the proposed rent increase amount and percentage, with reference to RERA calculator where applicable

7. Effective Date: Specification of when the new rent will take effect

8. Legal Basis: Reference to relevant UAE laws and regulations justifying the increase

9. Signature Block: Space for landlord's or authorized representative's signature and official stamp if applicable

Optional Sections

1. Market Analysis Reference: Include when providing justification based on current market rates and comparable properties

2. Payment Instructions: Include when payment methods or banking details are changing along with the rent increase

3. Negotiation Invitation: Optional paragraph inviting the tenant to discuss the increase if the landlord is open to negotiation

4. Maintenance Record: Include when improvements or significant maintenance to the property justifies the increase

Suggested Schedules

1. RERA Rent Calculator Printout: Official RERA calculation showing the permitted rent increase percentage

2. Current Lease Agreement Copy: Copy of the existing lease agreement referenced in the letter

3. Market Rate Analysis: Supporting documentation showing comparable rental rates in the area

4. Property Maintenance Records: If referenced, documentation of improvements or maintenance work completed

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




















Clauses















Relevant Industries

Real Estate

Commercial Property

Retail

Professional Services

Hospitality

Healthcare

Manufacturing

Technology

Financial Services

Education

Logistics

Wholesale Trade

Construction

Industrial

Relevant Teams

Real Estate

Legal

Property Management

Operations

Finance

Asset Management

Administration

Tenant Relations

Compliance

Facilities Management

Relevant Roles

Property Manager

Real Estate Manager

Facility Manager

Legal Counsel

Commercial Lease Administrator

Asset Manager

Real Estate Director

Operations Manager

Commercial Property Agent

Tenant Relations Manager

Real Estate Portfolio Manager

Chief Financial Officer

Business Owner

Company Director

Lease Administrator

Property Management Coordinator

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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