Raising rent in Morocco
rules, caps and revision procedure

1. The basic rule: free rent at signing, regulated revision afterwards

First reflex to correct: in Morocco, you do not decide alone to raise a rent during the lease. The initial rent is freely negotiated between landlord and tenant — but once the contract is concluded, the law takes back control over any later increase. The applicable regime depends on the nature of the lease:

• Residential lease (and non-commercial professional use): governed by law 67-12 of 19 November 2013. Conventional revision if a clause provides for it, otherwise the tenant's agreement, otherwise a decision of the court of first instance.
• Commercial, industrial or craft lease: governed by law 49-16 of 18 August 2016. Revision possible only every three years, within capped limits, with litigation before the commercial court.

In both cases, the revision is justified not by an assertion — "the market has gone up" — but by a demonstrable market rental value. This is the common thread of the whole subject.

2. Residential (law 67-12): the three routes to an increase

For a home let for residential use, raising the rent means taking one of these three routes:

• Conventional revision. If the lease contains a revision clause (indexation, fixed periodic increase), it applies according to the terms set in the contract. This is the simplest route — hence the landlord's interest in inserting such a clause when drafting the written lease.
• Amicable agreement. Without a clause, landlord and tenant can agree on a new rent, recorded by an amendment or a new lease. An upstream rental-value appraisal helps propose an amount accepted by both sides, without litigation.
• Judicial revision. Failing agreement, the landlord applies to the court of first instance, which rules on the rental value of the home in light of the current market. The judge generally relies on a property appraisal report.

The most frequent case is the clearly under-market rent: a lease concluded ten or fifteen years ago, at a rent now far below what the area demands. The landlord can request the revaluation — but will have to demonstrate the gap, not just invoke it. Everything then rests on the rental value established by comparison with recent lettings of similar properties.

3. Commercial (law 49-16): the capped three-yearly revision

The commercial lease follows a more rigid regime, designed to stabilise both the tenant's operation and the landlord's income. The initial rent remains freely set (art. 10), but the increase during the lease is strictly framed:

• One revision every three years (art. 11), based on a reference index — in practice the consumer price index published by the HCP — or a comparison with rents in the area.
• An increase cap (art. 12): 8% for premises used for professional purposes and 10% for purely commercial premises, except for notable transformations justifying a judicial revaluation beyond.
• Litigation over the revision falls to the territorially competent commercial court.

This cap explains a paradox experienced by many landlords: premises let for a long time can end up well below the market, because a capped increase applied at each due date rarely catches up with a surge in area rents. This gap between the sitting rent and the rental value weighs not only on cash flow: it also weighs on the value of the asset.

4. The notification procedure, step by step

Raising a rent is not improvised by a simple message: the form conditions the validity. Depending on the route chosen:

• If a revision clause exists: it applies according to its own terms (effective date, index, formula). The point is to inform the tenant of the new amount calculated in accordance with the contract.
• Without a clause: the landlord makes a written proposal to the tenant, ideally quantified and justified. If there is agreement, an amendment — or a new lease — records the revised amount.
• For any notification with legal effect (notice to quit, formal demand linked to the revision), adoular, notarial or bailiff deeds provide the required enforceability. The exact form of a revision notification depends on the texts and their application: confirm it with your lawyer or notary.
• For commercial leases: the request must respect the three-yearly schedule — a request outside the period is inadmissible.

The common point: a request that is neither within the deadlines, nor in the proper form, nor supported by a defensible figure is exposed to the tenant's refusal… then to the judge.

5. The tenant refuses: judicial fixing of the rent

This is the point many landlords miss: a refused increase does not apply. Outside a contractual revision clause, the landlord may proposean increase, but if the tenant refuses it, they cannot impose it on their own — they must obtain the tenant's agreement or apply to the judge.

It is then the court that decides, on the basis of the rental value:

• Residential (law 67-12): the court of first instance sets the new rent with regard to the rental value of the home in the current market.
• Commercial (law 49-16): the commercial court rules within the three-yearly cap, except for notable transformations justifying a revaluation beyond.

One essential point to understand: in judicial matters, it is the judge who appoints the expert. An independent private appraisal report does not replace the judicial appraisal: it serves to objectify the debate and support the landlord's position — to calibrate a defensible request, negotiate an amicable agreement before trial, or respond seriously to a challenge. It is a decision and negotiation tool, not a substitute for the mission ordered by the court.

6. Rental value: the only reference that decides

Whether the increase is settled amicably or before the judge, everything converges towards a single notion: the market rental value of the property. It is clearly distinct from market value and reinstatement value. In concrete terms, it is established:

• By comparison: recent lettings of similar properties in the same area, with adjustments recorded for area, floor, condition, finishes and aspect.
• By cross-checking with income capitalisation where the property warrants it (commercial premises, investment building).
• By incorporating the real condition of the property: wear, works to be expected, layout — all elements that make a requested rent justified… or not.

This same notion of rental value serves as a reference in other rental disputes, such as the occupation indemnity. Knowing how to establish it means holding the only ground on which the discussion is won.

7. Landlord: securing an increase request

• Anticipate in the lease. Insert a revision clause (indexation, periodic increase) when drafting the written lease: it is the simplest route and avoids resorting to the judge.
• Respect the schedule. For commercial leases, revision is only available once every three years; a request outside the period is inadmissible.
• Mind the form. Written proposal, amendment in case of agreement, enforceable notification for any act with legal effect: a poorly notified request backfires on the landlord.
• Document before requesting. A request backed by a rental-value report — defensible range, written methodology, recorded comparables — carries infinitely more weight than a letter invoking "the rise of the market".
• Keep collecting the current rent. As long as the revision is not recorded or adjudicated, the old rent applies; an unpaid amount, however, remains a ground for termination.

8. FAQ

Note: this article describes the framework for raising and revising rents in Morocco (law 67-12 for residential, law 49-16 for commercial leases). Terms, deadlines, indices, notification forms and caps depend on the texts in force and their application: confirm your precise situation with your lawyer or notary. In judicial matters, the expert is appointed by the judge; a private appraisal serves to objectify the negotiation and support a position, not to replace the appraisal ordered by the court. To document the rental value of your property, see our real estate appraisal service or the ReaConsult blog.