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Commercial Rent Increase Letter

Commercial Rent Increase Letter Template for Australia

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Key Requirements PROMPT example:

Commercial Rent Increase Letter

"I need a Commercial Rent Increase Letter for my Sydney retail property, implementing a 5% rent increase effective March 1, 2025, with the increase based on the current market rate valuation."

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Document background
The Commercial Rent Increase Letter is a crucial document in Australian commercial property management, used when property owners or their representatives need to formally notify tenants of a rent increase in accordance with the lease agreement and applicable state/territory legislation. This document is typically issued during regular rent review periods or as specified in the lease agreement, providing detailed information about the increase, its calculation method, and effective date. The letter must comply with notice periods and other requirements set forth in Australian commercial tenancy laws, which vary by state/territory. It serves as both a legal notice and a formal record of the communication between landlord and tenant regarding the rent adjustment.
Suggested Sections

1. Recipient Details: Full legal name and address of the tenant, property reference number if applicable

2. Property Information: Complete address and details of the leased premises

3. Lease Reference: Details of the existing lease agreement including date of execution and any relevant clause numbers regarding rent reviews

4. Current Rent Details: Statement of current rent amount and payment frequency

5. Increase Information: Clear statement of the new rent amount, percentage increase, and effective date

6. Notice Period Declaration: Confirmation that the required notice period as per lease agreement and relevant legislation is being provided

7. Payment Instructions: Updated payment details if applicable and due date for the new rent amount

Optional Sections

1. Calculation Method: Include when the increase is based on a specific formula (e.g., CPI adjustment) or when transparency in calculations would be beneficial

2. Market Review Reference: Include when the increase is based on a market rent review, referencing any valuations conducted

3. Historical Review Information: Include when useful to reference previous rent reviews or to demonstrate compliance with rent increase frequency restrictions

4. Dispute Resolution Options: Include when required by state legislation or when dealing with complex increases that might require negotiation

5. Meeting Request: Include when planning to discuss the increase in person or when required by the lease agreement

Suggested Schedules

1. CPI Calculations: Detailed breakdown of CPI-based calculations if applicable

2. Market Rent Valuation Summary: Summary of independent valuation if the increase is based on market review

3. Lease Extract: Relevant sections of the lease agreement regarding rent reviews and increases

4. Historical Rent Schedule: Schedule showing rent payment history and previous increases if relevant

Authors

Alex Denne

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

alex.den.21@genieai.co
Relevant legal definitions


















Clauses












Relevant Industries

Real Estate

Retail

Commercial Property

Office Space

Industrial

Hospitality

Healthcare

Professional Services

Warehouse and Logistics

Manufacturing

Entertainment and Recreation

Relevant Teams

Legal

Property Management

Asset Management

Operations

Finance

Leasing

Administrative Support

Tenant Relations

Real Estate

Compliance

Relevant Roles

Property Manager

Lease Administrator

Commercial Real Estate Manager

Facilities Manager

Asset Manager

Building Operations Manager

Real Estate Portfolio Manager

Leasing Executive

Commercial Property Officer

Tenant Relations Manager

Legal Counsel

Finance Manager

Commercial Property Administrator

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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