When Landlords Need to Write Rent Increase Letters

How to Send a Rent Increase Letter to Tenant

The dreaded rent increase letter: All renters hate to see it coming, and many landlords don’t know the proper way to write one. This document is extremely important to keep your rental business legally compliant all while maintaining an effective and professional landlord-tenant relationship.

But what should they include, and how should a landlord deliver it? Here are a few critical tips about why you should write good rent increase letters, and how to do it.

What is a Rent Increase Letter and Why Would You Need to Write One?

A rent increase letter is a written document that formally tells a tenant about an upcoming change in their monthly rental payment. Not only is this letter legally required in most states, but it also serves as an official record that details (1) when the change will take place, and (2) how much the new rental amount will be.

There are a few reasons why a landlord should always write a rent increase letter to tenant unit occupants. Here are some common ones:

1. Abide by your state’s rental laws: Most states require some type of formal, written notice for rent increases.
2. Record keeping: Unfortunately, sometimes tenant disputes over rent amounts occur. The best way to combat these disputes is to have well-written, meticulously kept documents. By keeping clear documents with the correct rental amount, you can protect yourself from tenant lawsuits.
3. Maintaining tenant relationships: The most important thing you can do as a landlord is maintain your tenant relationships. Not only will it reduce turnover, but it could lead to more potential renters as good reviews about your rental business spread throughout your community.

The Best Time to Send a Rent Increase Letter

Generally, landlords should provide notice of a rent increase anywhere from 30 to 90 days in advance of the increase taking place. However, this notice period is something your state will have laws and guidelines about. As always, be sure to do research and abide by your state’s laws.

A landlord will typically send a rent increase letter as a rental agreement comes up for renewal. However, there are a few other circumstances where a landlord may need to send a rental increase notice earlier. For example, significant improvements or renovations that significantly increase the unit’s value should bring about a rent increase. Although it’s unlikely that these substantial renovations will occur during a lease term, if it does, you should send your rent increase notice as soon as you know how much the rent will increase by. Similarly, if there is high inflation or intense housing shortages, a landlord may raise rent mid-lease to cover increased operational costs.

Above all, consult an attorney or do your own research into your state’s rental laws to determine how long you must give your tenant between issuing the notice and increasing rent.

What Should Your Letter Say?

Although rent increase letters will vary depending on what your state requires, generally, letters will include the following:

• Tenant’s name
• The rental property address
• Date of when the notice was issued
• The current rent
• The proposed increase
• The new, increased rental amount
• The effective date of the new monthly rent
• How long the tenant has to accept/decline the terms
• Local laws and regulations

If you have any questions about how to format your letter or ideas regarding what else to include, search for a rental increase letter template online.

Remember to Be Understanding

Remember, this isn’t going to be good news for your tenant. Friendly rent increase letters help you maintain your relationship with your tenants while conducting what can be a somewhat awkward exchange. Here are a few tips for writing a kind yet professional rent increase letters:

• Provide a reason: Transparency is key. Including a brief explanation for the rent increase can help a tenant understand why you have to enforce the change.
• Be professional: Keep your tone approachable but clear. You want to show your tenant that you’re considerate while maintaining formal language.
• Use a template: A rental increase letter template can help you achieve the right tone while ensuring you don’t miss any important terms.

Delivery Tips

You can deliver your rent notice by mail, email, or by getting a signed receipt directly. Again, different states have different guidelines regarding delivery. Some states have local regulations that require that the tenant signs the notice to ensure they understand the new terms.

Conclusion

Not sending a rent increase letter can lead to legal penalties, unpaid rent, and tenant disputes. Overall, it’s important to issue this notice so you can upkeep a professional and efficient tenant/landlord relationship. Maintaining professionalism should be one of your main concerns when conducting rental management business. These tips should encourage you to write your own rent notices and notify your tenants the right way.