(Overly) low rent? Find out if you can give a rent increase notice

According to the provisions of art. 6851 of the Civil Code, the Lessor may increase rent by giving at least a one-month rent increase notice, at the end of a calendar month. The provisions apply to contracts concluded both for a defined and undefined period. The term used in the contract to describe the rent, i.e. fixed rent or rent as a percentage of sales, is of no major importance here – we can read in the e-book prepared by the lawyers of Causa Finita Commercial Real Estate Law Firm.

The lessor cannot increase the rent at his full discretion. The legal definition of rent is "an essential aspect of the Lease Contract” and, in the absence of the lessee's consent to the new rent, the contract of lease is terminated. The lessee will probably question the rent increase by referring to the lessor's abuse of his right to provide notice of a rent increase or by claiming that the increase is groundless.

However, it is generally possible to issue a rent increase notice. Nevertheless, lessors should bear in mind that the provisions of art. 6851 are in no case a carte blanche allowing them to set rent prices at a whim. They are rather a legal instrument serving to re-establish the balance between the services provided by the lessor to the lessee, and what he gets in exchange. That is why, it is so important to know, what legal and actual actions should be taken for an effective increase and how to ensure that the new rent rate be of market character.