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Commercial Rent Increase Letter Template for United Arab Emirates

A formal document used in the United Arab Emirates to notify commercial tenants of an impending rent increase, compliant with UAE federal laws and local emirate-specific regulations such as RERA guidelines. The letter outlines the proposed rent increase, its effective date, and legal justification under UAE tenancy laws. It must adhere to specific notice periods and maximum increase percentages as established by local authorities, particularly in Dubai and Abu Dhabi. The document serves as an official record of the rent increase notification and forms part of the legal documentation for the commercial tenancy relationship.

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What is a Commercial Rent Increase Letter?

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.

What sections should be included in a Commercial Rent Increase Letter?

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

What sections are optional to include in a Commercial Rent Increase Letter?

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

What schedules should be included in a Commercial Rent Increase Letter?

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) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Publisher

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Cost

Free to use

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