Increasing rent in a lease

Increasing rent is an option in the contract details step that makes each year's rent differ from the first year: higher or lower, starting from the second year.

What it is, and who it is for

• For example: a merchant renting a shop who needs a few months to fit it out agrees with the owner on a lower rent in the first year and a higher one after it. Or an owner wants a known yearly increase from the start.
• Available for residential and commercial leases.
• Optional, and shown only for a lease longer than one year.

How to turn it on

In the contract details step, under the payment schedule:

1. 1
   Turn on the «Increasing rent» switch.
2. 2
   Choose the type: «By percentage %» or «Fixed amount».
3. 3
   Choose the direction: «Increase rate +%» or «Decrease rate -%» (or «Increase amount» / «Decrease amount» for a fixed amount). One direction for the whole lease.
4. 4
   Enter the value:- By percentage %: one field per year from the second year — «Increase rate for year 2», «Increase rate for year 3»… Each rate is between 1 and 100, up to 6 decimal places.- Fixed amount: one field «Increase amount:» (or «Decrease amount:») added every year.

How the rent is calculated

• By percentage %: each year's rate applies to the first year's rent, not to the previous year. To keep the third year at the second year's rent, enter the same rate again; 0% is not accepted (the value is between 1 and 100).

Explicit example: first-year rent 70,000, with 10% for year 2 and 20% for year 3 ⟵ year 2 is 77,000 and year 3 is 84,000 (not 92,400).

• Fixed amount: the amount is added (or taken) again every year. Example: 30,000 with a 2,000 increase over 3 years ⟵ 30,000 / 32,000 / 34,000.
• For a decrease: no year's rent may go down to zero or below.

How the payments are split

Each year's rent is divided into its payments according to the payment method you chose: Monthly (12 a year), Quarterly (4), Semi-annual (2), Annual (1), or Single payment. So the payment amount changes from year to year; if a year's rent does not divide to the halala, the difference goes to that year's last payment.

Complete examples

The figures below are calculated by the site's own calculation, for leases starting on 1 December 2026.

A) Commercial, 3 years, 70,000, increase by percentage, semi-annual

• Rates entered: 14.285714% for year 2 and 14.285714% for year 3 (to keep year 3 at year 2's rent; 0% is not accepted).
• Rent: year 1 70,000 · year 2 80,000 · year 3 80,000. Total 230,000.
• Payments: year 1, 2 × 35,000 · year 2, 2 × 40,000 · year 3, 2 × 40,000.

B) Residential, 2 years, 30,000, fixed increase of 2,000, monthly

• Rent: year 1 30,000 · year 2 32,000. Total 62,000.
• Payments: year 1, 12 × 2,500 · year 2, 11 × 2,666.66 and a last payment of 2,666.74 (rounding difference).

C) Commercial, 3 years, 100,000, 10% decrease, annual

• Rates entered: 10% for year 2 and 10% for year 3 (to keep year 3 at year 2's rent).
• Rent: year 1 100,000 · year 2 90,000 · year 3 90,000. Total 280,000.
• Payments: one payment a year at that year's rent.

What you see at review, and what reaches Ejar

• At review: an «Increasing rent» line with its type («Increase rate», «Decrease rate», «Fixed increase», «Fixed decrease»), then «Year 1 rent», «Year 2 rent»…; the payment schedule and the lease total are calculated with the increasing rent.
• Ejar receives the first year's rent, with the increasing-rent type and direction, and the rate for each year or the fixed amount.

Note

Once the lease has been sent, Raghdan cannot change it. Changes and renewals are made on the Ejar platform.

Related articles

• Step four: contract details, review and payment