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Commercial Rent Increase Notice

Commercial Rent Increase Notice Template for Malaysia

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Key Requirements PROMPT example:

Commercial Rent Increase Notice

"I need a Commercial Rent Increase Notice for my retail tenant in Kuala Lumpur, implementing a 10% increase effective March 1, 2025, with the notice to be delivered 3 months in advance as per our lease agreement."

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Document background
The Commercial Rent Increase Notice is a crucial document in Malaysian commercial property management, used when landlords need to formally notify tenants of changes to their rental obligations. Under Malaysian law, particularly governed by the National Land Code 1965 and Contract Act 1950, such notices must be provided within specified timeframes and contain certain essential information to be legally valid. The document serves as an official record of the communication and typically includes details of the current rent, proposed increase, effective date, and calculation method. It's particularly important in commercial settings where rent increases may be tied to market rates, inflation indices, or predetermined increments as specified in the original lease agreement.
Suggested Sections

1. Letterhead and Date: Company letterhead with full business details of the landlord/property management company and the current date

2. Tenant Details: Full name and address of the tenant, including the business name and registration number if applicable

3. Property Details: Complete address and description of the leased premises

4. Reference Numbers: Relevant reference numbers including lease agreement number and any property identification codes

5. Subject Line: Clear indication that this is a notice of rent increase

6. Current Rent Statement: Statement of the current rent amount and payment terms

7. New Rent Details: Clear statement of the new rent amount and when it will take effect

8. Legal Basis: Reference to the relevant clause in the lease agreement that permits the rent increase

9. Notice Period Confirmation: Confirmation that the notice period provided complies with the lease agreement terms

10. Signature Block: Authorized signatory details including name, position, and contact information

Optional Sections

1. Rent Increase Calculation: Detailed breakdown of how the new rent was calculated, particularly if based on a formula or index - include when the lease specifies that calculations must be shown

2. Historical Payment Record: Summary of tenant's payment history - include when justifying the increase based on market rates or when there's a history of late payments

3. Market Analysis: Brief explanation of market conditions justifying the increase - include when required by the lease or when increasing rent significantly

4. Payment Instructions: Updated payment details or methods - include when changing payment procedures along with the rent increase

5. Meeting Request: Invitation to discuss the increase if needed - include when managing long-term tenant relationships or with significant increases

Suggested Schedules

1. Rent Calculation Schedule: Detailed mathematical breakdown of the rent increase calculation, particularly if based on a specific formula or index

2. Market Rate Comparison: Documentation of comparable property rents in the area to justify the increase

3. Payment Schedule: Schedule showing the new rent amounts and due dates for the upcoming period

4. Original Lease Extract: Copy of the relevant sections from the original lease agreement regarding rent increases

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

Office Space

Industrial

Hospitality

Healthcare

Education

Warehousing

Manufacturing

Food and Beverage

Professional Services

Entertainment

Relevant Teams

Legal

Property Management

Operations

Finance

Asset Management

Administrative

Real Estate

Facilities Management

Tenant Relations

Compliance

Relevant Roles

Property Manager

Real Estate Manager

Facility Manager

Legal Counsel

Commercial Lease Administrator

Asset Manager

Building Manager

Operations Director

Finance Manager

Property Administrator

Lease Coordinator

Real Estate Director

Commercial Property Officer

Tenant Relations Manager

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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