Lease Renewal and Escalation Letter

Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Date

{{date}}

Recipient Information

{{tenant_name}}

{{tenant_address}}

Subject: Lease Renewal and Escalation - Property: {{property_address}}

Dear {{tenant_name}},

Lease Renewal Offer

This letter serves to formally offer the renewal of your lease agreement for the property located at {{property_address}} (the "Premises"). Your current lease agreement is due to expire on {{current_lease_end_date}}.

New Lease Term and Rental Escalation

We propose a renewed lease term of {{new_lease_term}} commencing on {{new_lease_start_date}} and terminating on {{new_lease_end_date}}.

In accordance with clause {{escalation_clause_number}} of your original lease agreement and prevailing market conditions in South Africa, the monthly rental will be escalated by {{escalation_percentage}}%. The new monthly rental amount will be ZAR {{new_monthly_rent}} ({{new_monthly_rent_words}} Rand) inclusive of VAT, if applicable.

This adjusted rental amount will be effective from {{new_lease_start_date}}.

Payment Terms and Conditions

All other terms and conditions of the original lease agreement, unless otherwise specified herein, shall remain in full force and effect.

Rent is due on the {{rent_due_day}} of each month. Payment should be made to: {{bank_name}}, Account Name: {{account_name}}, Account Number: {{account_number}}, Branch Code: {{branch_code}}.

Acceptance of Renewal Offer

Please indicate your acceptance of this lease renewal and rental escalation by signing and returning a copy of this letter by no later than {{response_deadline_date}}. Failure to respond by this date may result in the offer being withdrawn and the property being offered to other prospective tenants.

Should you choose not to renew the lease, please notify us in writing by {{response_deadline_date}} to make arrangements for vacating the Premises on or before {{current_lease_end_date}}.

Compliance and Legal Notice (SADC/South Africa)

This lease renewal is subject to the provisions of the Rental Housing Act (RHA) and other applicable laws in South Africa. Both parties are encouraged to familiarise themselves with their rights and obligations under the aforementioned Act.

While not directly applicable to commercial leases, the spirit of consumer protection, as broadly applied in South Africa, including principles often found in the Consumer Protection Act (CPA) (where a tenant may be considered a 'consumer' in certain contexts), is considered. Information regarding this lease may be processed in accordance with the Protection of Personal Information Act (POPIA).

Contact Information

Should you have any queries or require clarification, please do not hesitate to contact us at {{phone}} or {{email}}.

Signature Block

Sincerely,

_____________________________

{{company_representative_name}}

{{company_representative_title}}

For: {{company_name}}

_____________________________

Date

ACCEPTED AND AGREED:

_____________________________

{{tenant_name}}

{{tenant_ID_number}}

_____________________________

Date