A rent increase letter serves as an essential communication tool between a landlord and tenant, indicating an upcoming rise in the monthly rent. Typically a formal document, it must be delivered to the tenant well in advance — at least 30 days prior to the actual increase in many regions. However, certain local laws, especially in larger cities, might stipulate a 90-day notice period. Before dispatching such a letter, landlords should acquaint themselves with their jurisdiction’s specific legal stipulations. To ensure receipt by the tenant, it’s recommended to send the letter via certified mail.
It’s also pivotal to note that landlords are prohibited from raising the rent during an active lease term. Such adjustments are permissible only upon its expiration, and with the tenant’s explicit consent. This consent can manifest in different ways: the tenant might sign a fresh lease reflecting the new amount, endorse the rent increase letter, or continue occupying the property after the adjusted rent kicks in. If a tenant remains without addressing the hike, they are obligated to pay the revised rent. Failing to do so could make them vulnerable to potential legal ramifications, including eviction.
Rent Increase Letters
Rent Increase Letter
Rent Increase Letter
Rent Increase Letter Template
Rent Increase Letter Template
Sample Rent Increase Letter to Tenant
Sample Rent Increase Letter to Tenant
Sample Rent Increase Letter
Sample Rent Increase Letter
What Is a Rent Increase Letter?
A rent increase letter is a document written to tenants to inform them of the upcoming change in their rent. It is usually sent a few days before the current lease expires. Fortunately, it is never good news to tenants since it means they have to dig deeper into their pockets.
What to Include in a Rent Increase Letter
This letter should include information regarding the property and the increase. Here is what to include:
- Renter’s name
- Property address
- Date letter is written
- Date the Increase takes effect
- Date the increased rent is due
- Reference to contract or rental agreement
- Date the tenant must vacate property if they do not agree to increase
- Landlord’s name and contact information
- Last date the renter can respond
Rent Increase Letter (Template)
From:
{Your name}
{Property name}
{Your address}
To:
{Renter’s name}
{Renter’s address}
Date: {Date}
Dear {Renter’s name},
I hope this letter finds you well. I’m writing to notify you of an upcoming adjustment in the monthly rent for {property address, unit number}. Effective {date of increase}, the rent will be adjusted to {amount of increased rent}. This revised amount will be due on {date} and on the {number} day of each subsequent month. All other terms, conditions, and provisions of our existing lease agreement remain unchanged.
To streamline this process, kindly indicate your decision below regarding the rent increase:
- Agreement & Continuation of Tenancy: By signing under this option, you acknowledge the rent adjustment and express your intent to continue the tenancy under the original lease agreement.
- Disagreement & Intent to Vacate: By signing under this option, you indicate disagreement with the rent increase and your intention to vacate the property before the lease term ends. Please specify your anticipated move-out date.
Please return this signed letter by {date}. Should you have any questions, concerns, or require further clarification, do not hesitate to reach out to me at {phone number or email address}.
Thank you for your attention to this matter. We value you as a tenant and appreciate your understanding.
Warm regards,
{Your signature}
{Your name}
Acknowledgment
Yes, I agree to the rent increase and will continue my tenancy as per the original lease agreement.
Signature: _________ Date: _________
No, I do not agree with the rent increase. I will vacate the property before my lease term concludes.
Signature: _________ Date: _________
Anticipated move-out date: _________
Sample Rent Increase Letter
Andrea Moore
Santori Properties
3000 West Eiden Place
Tillerson, SC 28659
Ms. Libby Devon
3006 West Eiden Place
Apt. 200
Tillerson, SC 28659
Date: July 20, 2043
Dear Ms. Libby Devon,
I hope this letter finds you in good health and spirits.
I’m reaching out to inform you of an adjustment in the monthly rent for your residence at 3006 West Eiden Place, Apt. 200. Effective September 1, 2043, the rent will be revised to $1,108.00. The updated rent will be due on September 5, 2043, and subsequently on the 5th of every month. Rest assured, all other clauses and provisions of our existing lease agreement remain unchanged.
To facilitate a smooth transition, kindly indicate your stance on the proposed rent adjustment:
- Agreement & Continuation of Tenancy: By signing here, you acknowledge the rent change and express your intent to continue the tenancy under the existing lease terms.
- Disagreement & Intent to Vacate: If you choose to sign here, it signals your dissent to the rent increase and your plan to vacate the property before your lease concludes. Please specify your anticipated move-out date.
For this process, I kindly request you to return the signed letter by August 20, 2043. Should you have any queries or require further clarification, please do not hesitate to call me directly at 765-829-2000.
Your prompt attention to this matter is much appreciated. We value your tenancy and genuinely hope for its continuation.
Warm regards,
Andrea Moore
Acknowledgment
[X] I consent to the rent adjustment and intend to continue my tenancy as agreed upon in our original lease.
Signature: L. Devon Date: August 5, 2043
[ ] I disagree with the rent adjustment and will depart from the property before my lease expires.
Signature: _________ Date: _________
Anticipated move-out date: _________
Rent Increase Letter Examples
Rent increase letters don’t need to be difficult or complex, and reading a sample letter can help you write a professional letter easily. The above basic format can be modified for your use. Simply fill out the necessary information, and you have a ready-made, professional rent increase notice.
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When to Write a Rent Increase Notice?
Landlords and property managers can choose to increase their properties rent from time to time. But before they make an increase, they must send an increasing letter to their potential clients. In addition, property managers must offer their tenants a 60-day rent increase notice. The tenants will familiarize themselves with these changes within this period and start preparing for what is waiting for them.
Note: The landlords must offer their tenants a 60- day increase letter notice to ensure that their potential clients familiarize themselves with the change and commence earlier preparation to implement them. Furthermore, they must familiarize themselves with the laws of their State before drafting a rent increase letter.
So, when should you compose a rent increase letter?
You can confidently write a rent increase if you would love to feature documentation notifying your tenant about the rent increase. And if you want to make your tenants aware of the rent increase amount monthly.
When it comes to how much you should increase your rent, kindly refer to your local and State laws. Furthermore, these laws will also update you on the number of days you should notice your tenants before increasing your rent. On the other hand, landlords are usually not allowed to increase the rent when there is a current agreement.
Some States usually restrict their landlords from raising rent without sending the correct rental increase letters or forms. Similarly, some States incorporate their requirements concerning the amount increase. Therefore, ensure you familiarize yourself with the laws of your State before drafting a rent increase letter.
Why Should You Increase the Rent?
Before landlords decide to increase the rent, they must follow specific criteria to write a rent increase letter. When the property managers ignore the rules they must follow, they might experience problems such as invalidation of the rent increase. Below are several reasons why landlords opt to increase the rent of their tenants:
- It is their legal right to increase rent- The landlords have the legal right to raise their tenants’ rent as long as they send ta 60- day increase rent notice before implementing the changes. Besides, they must make sure they follow their State’s legal procedures.
- Increase in expenses- To sort your costs and handle bills, you must sometimes increase your tenants’ rents. This is likely to happen when managing your property becomes costly, and you are left with no option but to increase the rent.
- Maintain fair market rent- You can have a lease agreement with your tenant. But the rent price in your area might have risen significantly, and your tenants disagree with the rent increase. You will find other potential tenants who will accept the price.
Before increasing your rent, you must understand that the lease agreement you made with your tenant for a certain period remains valid unless your lease expires. Therefore, suppose you want to increase your tenants’ rent, you will have to wait until the agreement expires. As you wait, ensure you send a rent increase letter to your tenants to update them on your upcoming plans.
Likewise, a rent increase comes with risks, such as the tenant moving out. It is crucial to consider this before drafting a rent increase letter, especially if your apartment is located where it is challenging to get remarkable clients.
Tips for Writing Your Rent Increase Letter
Many landlords find it tricky to write a rent increase letter since their relationship with their clients is too delicate. This means the Landlord needs to ensure this letter is drafted correctly to avoid breaking the excellent relationship with the tenants. Here are a few tips for writing a rent increase letter:
Be professional and courteous
The tone you use in your letter must be professional as well as courteous. In addition, utilize friendly statements and avoid being very casual in your approaches. This will showcase the seriousness of the changes you will be making.
Exercise flattery
It is appropriate that you compliment your tenants and tell them how impressed you are to have them renting your property because they pay on time and follow the rules to the latter. With this, you will make your tenants feel great. Ensure you extend your sincere appreciation to them. Make sure that you do not overdo flattery and stick to your facts to make your tenant feel how genuine you are when breaking the news about rent increment.
Write your reasons for rent increment
Ensure you do not write this letter to your tenant before you end the lease agreement with your tenant unless your lease agreement permits you to do so before it expires, and ensure that you state your reasons for increasing the rent. This will make your tenant understand why you decided to increase the rent. Writing a letter without an explanation might not be appropriate to your tenants.
Consider your tenant
As you draft your rent increase letter, consider your tenant who will receive the letter. Bear in mind that the tenants also have their expenses to sort. With this in mind, ensure you use a positive, empathetic tone that will not make your tenants feel offended.
Communicate the message efficiently
If you communicate your message effectively and openly, there is no doubt that your tenant will have a positive reaction to your letter. Increasing rent is sometimes necessary, but it might be an issue for some individuals. Thus, ensure that your message is communicated effectively.
When Can You Not Write a Rent Increase Letter?
It is not appropriate for landlords to wake up suddenly and increase rent. Instead, they should compose and draft a rent increase letter to update the tenants on the increase. Here are a few scenarios when you cannot draft a rent increase letter:
- Tenants have the legal right to reject the rent increment- It is right for the tenant to reject a rent increase letter, but it applies mostly when the tenants and the Landlord cannot get into an agreement. In this case, the tenant has no option but to move out. If the tenants refuse to move out, the Landlord will be forced to apply legal options.
- In some scenarios, tenants choose to fight against illegal rent increment in court- If the tenants feel like the Landlord has increased rent due to retaliation and discrimination. They can take the case to court. However, such cases might need the tenant to generate solid evidence to sufficiently support their case.
- When increasing the rent with an extraordinary amount- Before the landlords decide to increase the rent, they must think appropriately before writing a letter to their tenants. This means they must come up with a reasonable amount to avoid objections from their tenants. Ensure that the amount you add is fair enough by examining your competitors’ amount to avoid driving your tenants away.
- When you have inadequate rent increase notice- You must offer the rent increase letter according to your State’s law or locality. Although, in many cases, it is usually between 30 to 60 days, confirm to make sure you do not go against the laws of your State. Otherwise, you will likely meet an intelligent tenant that might prevent you from increasing rent.
- If you do not send the rent increase letter within the specified days of your State- As mentioned earlier, every State has its law. Therefore, ensure you familiarize yourself with the laws of your State and implement the specified days when writing the letter. This will prevent you from encountering conflict with your tenants.
- When there is a current lease- It is against the law to increase the rent when your tenant’s lease agreement has not expired. On the other hand, you can increase if your lease agreement agrees. If not, the Landlord must wait for the period to expire.
What You Need to Know About Rent Increases
Understand the Law Regarding Rent Increases
- Unless a lease specifies that rent can be increased during the lease term, you cannot increase the rent during this period. You must increase rent beginning the month after the lease ends.
- Be sure you know your state’s law regarding rent increase amounts. Check with your lawyer or your state’s landlord and tenant laws for rent increase limits. If you manage a rent-controlled property, contact the housing authority your property is affiliated with for more information.
- Most states allow rent increases once per year. Make sure you know your state laws regarding the frequency of rent increases.
- Discrimination in rent increases is illegal. Raising the rent for bad tenant behavior is also illegal.
Use Smart Practices for Rent Increases
- Although you must give 30 days’ notice for a rent increase in most states, allowing 60 days is a good practice. This allows your tenants time to give you notice they are leaving if they do not agree with the increase.
- Increase rent once a year in small increments rather than increasing rent less often in large increments. Most tenants expect a small yearly increase but are not willing to pay large increases less frequently.
- Require a written response, such as a tenant signature. This practice ensures that the increase doesn’t catch the tenant off guard.
- Deliver the letter personally or mail the letter. If you are mailing the rent increase letter, allow five days for transit. Sending the letter certified mail with a return receipt requested provides proof the tenant received it. Be sure you keep a copy of the letter.
FAQs
Below are several reasons why the landlords increase rent:
– Because of the increase in their expense
– It is their legal right to increase rent
– To exercise fair market rent
There is no specific time for your Landlord to increase rent. This means they can increase rent whenever they feel it is appropriate. However, they must wait for the lease agreement to expire in many cases. But if your lease agreement allows them to increase, they might increase any time about your lease agreement.
No, if the Landlord ambushes the tenant with the rent increase, it is considered an act of negligence because he did not notify the tenant on time. Therefore, the tenant cannot be held responsible for the rent increase they are unaware of. However, the tenant can file a case against the Landlord in such cases.
The duration the Landlord should give a rent increase notice usually varies. However, most States guarantee a 30- day notice before the Landlord enforces the rent increase. On the other hand, if the rent increase is beyond 10%. In States such as California, the notice expands to 60days.
Suppose you think that your Landlord has illegally raised your rent. You can do a few things to fight against illegal rent increases. These include:
– Keep note of every correspondence you receive, take note of verbal communication and track each day’s communication. This will help you prove harassment.
– Avoid assuming that the Landlord is wrong because sometimes they are never aware of their mistakes.
– Communicate with your Landlord over the issue before proceeding to court. Before going to court, remember the property belongs to your Landlord. If the Landlord finds you difficult, they can allow the tenancy to expire and find another client.
Important: As much as you might notice an illegal rise in rent, avoid threatening your Landlord since you can make your housing situation complicated because of a Landlord’s mistake. Furthermore, if you lose the case, you will likely face eviction.
Key Points:
- Know the legal requirements regarding rent increases and advanced notice required in your locality before you write the rent increase letters. Perhaps obtain legal advice from your attorney.
- This is a professional, formal document. Clear and concise letters are recommended.
- Be sure to give your contact information to your tenants in case they have a question.
- Send the tenant a copy of their signed rent increase letter.
