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Commercial Rent Increase Notice

Commercial Rent Increase Notice Template for Germany

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Key Requirements PROMPT example:

Commercial Rent Increase Notice

"I need a Commercial Rent Increase Notice for my retail property in Munich, implementing a 5% index-based rent increase effective from March 1, 2025, with detailed CPI calculations and supporting documentation."

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Document background
The Commercial Rent Increase Notice is a crucial document in German commercial property management, used when a landlord wishes to implement a rent increase for commercial premises. It must be drafted in accordance with the German Civil Code (BGB) and any specific provisions in the existing lease agreement. This document is typically used when rent adjustments are triggered by index-based increases, market rate changes, or as permitted by specific lease terms. The notice must include precise details about the current rent, the new rent amount, the basis for the increase, and the effective date. It requires careful preparation to ensure legal compliance and maintain professional relationships with tenants. The document serves as an official record of the rent increase notification and may be required in any subsequent legal proceedings.
Suggested Sections

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

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

3. Property Reference: Clear identification of the leased premises including address and any relevant property identifiers

4. Lease Agreement Reference: Reference to the original lease agreement including date and parties

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

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

7. Legal Basis: Reference to the specific clause in the lease agreement or legal basis allowing for the rent increase

8. Effective Date: Clear statement of when the new rent amount becomes effective

9. Signature Block: Date, place, and landlord's signature

Optional Sections

1. Market Analysis Reference: Include when the rent increase is based on market rate comparisons

2. Index Adjustment Calculation: Include when the rent increase is based on an index adjustment (e.g., consumer price index)

3. Operating Costs Breakdown: Include when the rent increase involves changes in operating costs or service charges

4. Payment Instructions: Include when payment details are changing along with the rent increase

5. Response Period: Include when giving the tenant a specific period to respond or acknowledge

6. Prior Increase History: Include when referencing previous rent increases to justify the current one

Suggested Schedules

1. Rent Calculation Sheet: Detailed breakdown of how the new rent amount was calculated

2. Index Development Documentation: Official documentation showing relevant index changes if increase is index-based

3. Market Comparison Analysis: Documentation of comparable commercial rents in the area if increase is market-based

4. Original Lease Clause: Copy of the relevant clause from the lease agreement permitting the rent increase

5. Operating Costs Statement: Detailed breakdown of operating costs if relevant to the increase

Authors

Alex Denne

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

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alex.den.21@genieai.co
Relevant Industries

Real Estate

Retail

Office Space

Industrial

Hospitality

Healthcare

Manufacturing

Logistics

Professional Services

Food and Beverage

Entertainment

Technology

Relevant Teams

Legal

Real Estate

Property Management

Asset Management

Operations

Facilities Management

Finance

Tenant Relations

Administration

Compliance

Relevant Roles

Property Manager

Real Estate Manager

Asset Manager

Facilities Manager

Legal Counsel

Commercial Lease Administrator

Real Estate Director

Property Operations Manager

Tenant Relations Manager

Commercial Property Officer

Real Estate Portfolio Manager

Lease Management Specialist

Industries
§ 535 BGB: Basic provisions regarding lease agreements - defines fundamental rights and obligations of landlords and tenants
§ 578 BGB: Specific provisions for commercial lease agreements - applies commercial tenancy rules and modifications to general lease provisions
§ 558 BGB: While primarily for residential leases, provides general principles for rent increases that may be referenced in commercial contexts
§ 313 BGB: Interference with the basis of the transaction (Störung der Geschäftsgrundlage) - relevant for fundamental changes affecting the lease relationship
§ 138 BGB: Moral transaction rules - ensures rent increases are not unconscionable or against good faith
§ 242 BGB: Good faith principle (Treu und Glauben) - overarching principle governing all contractual relationships
Price Clause Act (Preisklauselgesetz): Regulates the permissibility of price adjustment clauses in long-term contracts, including commercial leases
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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