Home Q&A Forum Can a landlord increase the rent on a commercial building lease without providing notice or justification?

Commercial Real Estate

Building Lease

Arizona

Asked on Jul 23, 2024

Can a landlord increase the rent on a commercial building lease without providing notice or justification?

I have been leasing a commercial building for my business for the past three years, and recently, my landlord informed me of a significant increase in the monthly rent. However, there was no prior notice or explanation given for this sudden increase, and I am concerned about the legality of such action. I want to know if the landlord has the right to raise the rent without providing any notice or justification, and what options I have to address this issue if it is indeed unfair or unlawful.

Answers from 1 Lawyer

Answer

Commercial Real Estate

Arizona

Answered 724 days ago

David U.

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Licensed in Arizona, Colorado
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June 22, 2023

In a vacuum, a landlord should not have a unilateral right to raise rent. A landlord may have the right to raise rents periodically, pursuant to the lease document. It is very much a contract issue. It depends on the exact wording of the lease agreement. The lease agreement will also detail the requirements for valid notification concerning the agreement. My experience over 25 years of practice is that most building lease agreements expressly provide for base rent to increase each year. A court will enforce most reasonable rental, escalation, clauses, and lease agreements. If there is no obvious language in the lease, the question becomes whether rental increase is implied under the wording of the document or an amendment to it. At the risk of being repetitive, it depends on what the lease says, if anything at all.

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