A rent increase letter is a written communication to existing tenants to notify them of an impending increase in rent. Though no law dictates the figure by which a landlord can increase rent, the landlord must follow the set state laws regarding tenancy. In the letter, the landlord must issue a notice of 30 or 60 days before the expiry of the current lease.
To get a hint of how to write the letter, consider referring to templates or samples.
When can you increase the rent?
A landlord can increase rent, but they must abide by state laws when they want to raise the rent. It’s at the expiry of a lease when a landlord can increase rent or if the lease agreement has provision for increasing rent.
Before a landlord increases rent, they must first issue a notice to the tenant of the impending increase. A notice of 30, 60 or 180 days is mandatory to increase rent depending on the state rules.
If the property is rent-controlled, a landlord cannot increase rent.
Reasons that may prompt a landlord to increase rent include;
- If property taxes increase
- Repairs or upgrade to the property
- An increase in property prices in the neighborhood
When you cannot increase the rent?
It’s against the law for a tenant to increase rent without issuing a notice to the tenants or to forcefully eject the tenant from the property or as discrimination on the basis of their faith, race, or social class.
If the lease hasn’t expired a landlord can’t increase rent. Same applies if the contract doesn’t have a provision to increase rent.
Any situation that can be interpreted as acting in bad faith to increase rent can land the landlord in trouble with the law.
Before considering increasing rent in any property, make sure your motive is right, and you’re in line with the law.
Rent increase letter format
Subject: A notice for an increase in rent
Dear [tenants name]
I take this chance to thank you for being a valuable and trustworthy tenant. Allow me to notify you of an impending increase in monthly rent because of inflation and the recent increase in property taxes.
Note that your current lease will expire on [date]. After the expiry date, the new rent will be [amount]. Kindly let me know if you’ll renew the lease.
It’s my hope you’ll continue living in the property. I treasure the long term relationship we’ve had as a landlord and tenant.
If you need any clarification on the matter, contact me on [phone number].
Yours truly,[Landlords signature] [Landlords name]
Sample rent increase letter
500 W Temple Street
Los Angeles, CA 90012
Unit number: B774 c
Subject: Rent increase
This notice serves to notify you that rent for [unit number]/ [property name] is subject to increase from [date]. We’ve no choice but to increase rent due to an increase in property taxes effective after one month.
If you’ll renew your lease, the new monthly rent shall be [amount] and will be due on every 10th day of the month.
Kindly sign the tenancy agreement to show if you’ll go ahead with the tenancy or not.
We value you as a reliable tenant, and it’s our hope you’ll continue living in our apartments.
I confirm to extend my lease at [property name]/ [unit number] at the new monthly rent of [amount].
Tenants signature………………………. Date…………………………..
I don’t agree to the new monthly rent of [amount] at [property name and unit number] effective [date]. I will move out of the unit on [date] based on the terms and conditions of our first agreement.
Tenants signature……………………….. Date…………………………….
Types of rent increase letter
Rent increase letter to tenants
- Effective date
- Notice period
- Reason for increasing the rent
Reply to a rent increase letter
- Tenant name and signature
- If they agree with the increase
- Property and unit number
Rent increase letter to a housing authority
- The property name
- Landlords names and address
- Current and proposed rent
- Date effective
- Why you’re increasing the rent