Letter to Increase Rent for Monthly Tenants

A Letter to Increase Rent for Monthly Tenants is a letter informing monthly tenants that the rent is increasing for their apartment. Being a landlord has several drawbacks, and one of those is the need to increase rent to keep up with rising costs and stay competitive. You must increase the rent, but you certainly don’t want to alienate your good tenants.

The way you write your letter can affect how your tenants react to the increase. This article provides some helpful tips about how to write an effective letter that encourages your tenants to continue their residency. We have also provided a format for this letter and a sample letter to demonstrate the format’s use.

  • Be Sure Your Rent Increase is Legal. Each state has different tenant and landlord laws that stipulate how large a rent increase can be and how often you can increase rent. There are also laws concerning the length of the notice period. In most states, you must allow your tenants 30 days notice of a rent increase.
  • Be Sure Your Rent Increase is Reasonable. For a rent increase to be reasonable, it must be determined by the local rental market. While increases in rent are necessary, you should avoid alienating your tenants with extreme increases.
  • Be Sure Your Rent Increase is Fair. Using a rent increase as retaliation for bad tenant behavior or as a form of discrimination is illegal. Tenants can sue landlords who break the law in this way.

Writing a Rent Increase Letter for Monthly Tenants

  • Use a basic format for all your rent increase letters. Consistency in all your correspondence is an important part of property management. Using a format also ensures you have all the necessary information in your rent increase letter.
  • Print your letter on company letterhead (optional).
  • Your letter should be professional but demonstrate kindness. Greet your tenants by name rather than the word “tenant.” This small act demonstrates kindness.
  • Enclose a notice for your tenant to sign indicating the new rent amount or disagreement of the new rent amount.

What to Include in Your Rent Increase Letters

Your rent increase letter should contain all of the following information:

  • Your name and contact information
  • The property address and unit number
  • A subject line like “Change in Rent” or “Rent Increase.”
  • The increased rent amount
  • The amount of increase
  • The current rent amount
  • The date the increased rent goes into effect
  • A response form

Letter to Increase Rent for Monthly Tenants (Format)

Here is the format for a rent increase letter for monthly tenants.

{your name}

{company name}

{address}

{date}

{tenant name}

{tenant address}

Subject: Change in Rent, Unit No. {number}

Dear {tenant name},

This letter serves to inform you that beginning on {date of increase}, the monthly rent amount for {address}, {unit number}, will be increased to {new rent amount} per month. This is a {amount} increase from your current rent amount of {amount} per month.

If you chose to continue your tenancy, the new rent amount will be due on {date}. All other terms of your original lease agreement remain in effect.

Please sign the enclosed notice indicating your agreement and your continued tenancy or your disagreement and your intent to vacate the property.

Thank you for your understanding. We appreciate your tenancy.

Sincerely,

{your signature}

{your name}

Enclosed Notice

Here is the enclosed notice of agreement or disagreement.

_____I agree to the monthly rent amount of {amount}, effective {date}, and I will continue my tenancy.

_____I do not agree to the new monthly rent amount of {amount}, and I will vacate the property on or before {date}.

{tenant name}

Sample Letter to Increase Rent for Monthly Tenants

Here is a sample letter based on the above format.

Mary Lee Aberson

Aberson Properties

206 South Mingo Road

Arcana Springs, AR 90775

May 1, 2022

Michael Harrison

206 South Mingo Road, #125

Subject: Change in Rent, Unit No. 125

Dear Mr. Harrison,

This letter serves to inform you that beginning on June 1, 2022, the monthly rent amount for 206 South Mingo Road, No. 125, will be increased to $850.00 per month. This is a $50.00 increase from your current rent amount of $800.00 per month.

If you chose to continue your tenancy, the new rent amount will be due on June 1, 2022. All other terms of your original lease agreement remain in effect.

Please sign the provided notice indicating your agreement and your continued tenancy or disagreement and your intent to vacate the property.

Thank you for your understanding. We appreciate your tenancy.

Sincerely,

Mary Lee Aberson

Mary Lee Aberson

Enclosed Notice

_____I agree to the monthly rent amount of $850.00, effective June 1, 2022, and I will continue my tenancy.

_____I do not agree to the new monthly rent amount of $850.00, and I will vacate the property on or before June 1, 2022.

Michael Harrison

Letter to Increase Rent for Monthly Tenants Template (Word)

Details
File Format
  • MS Word

Key Points

  • Understand tenant’s and landlord’s laws regarding rent increases
  • Greet your tenant by name
  • Use a standard basic format for your rent increase letters
  • Include all the necessary information about the rent increase
  • Enclose a response form for the tenant to sign indicating their choice