The rent increase rate in lease agreements is a matter that frequently gives rise to disputes between the parties. In general, the rent increase is applied by evaluating the rate specified in the contract together with the legal limits.
If no increase rate has been agreed in the contract, or if the agreed rate exceeds the legal limits, the principles set out in the current legislation apply. At this point, the contract date, whether the property is residential or commercial, and any practice from previous years, if any, must be evaluated together.
If the parties cannot agree on the increase rate, a lawsuit may be filed to have the rent determined by the court. In this process, the terms of the contract, comparable rental values, and current legislative provisions are evaluated together.
Because disputes regarding rent increases must be assessed according to the circumstances of each specific case, it is advisable to seek support from an attorney based on current legislation and practice.