Increasing rent letter 2023(guide + free samples)

This post covers everything you need to know about Increasing rent letter

Rent increasing is now a normal trend in the US.

For example, in this letter to the editor, titled Rent prices are increasing exponentially without any consequences Julia stated that A year ago, the average price of a room in Summit County was $1,100, and my $2,600 two-bedroom condo seemed pricey. Now, the average price is $1,500 a room.

Now, as a landlord, you must follow this pattern and raise the rent for your tenants.

How do you legally go about that?

It is simple, you have to notify your tenants about the rent increase through a formal letter that throughout this post we will be referred to it as an Increasing rent letter.

It might be challenging to know where to begin when having to write a rent increase letter.

Therefore here I will take you through;

  • What is an Increasing rent letter
  • Why you should increase rent
  • When to send an increasing rent letter
  • How to write an effective increasing rent letter
  • How to deliver your increasing rent letter
  • landlord increasing rent letter sample
  • etc.

let’s get started

What is an Increasing rent letter

An increasing rent letter is a brief written statement of facts written by the landlord to notify the tenants about the intentions of increasing the rent amount for the upcoming tenancy period.

Apart from informing a tenant of an upcoming change in rent, an increasing rent letter also gives an option for a tenant to vacate in case he will find the new rent unbearable.

Related: Notice to tenant to pay rent or vacate

Why you should increase rent

Although the precise reason for raising rent may differ from one landlord to another, there are a few primary causes why landlords must do so:

  • higher property taxes
  • excessive mortgage rates
  • increased living expenses
  •  increase in insurance premiums
  • To heed to terms and conditions in the lease agreement
  • To afford the cost of property maintenance
  • etc.

The general rule is that, when you are increasing the rent, make sure the price is fair and appropriate when compared to other rentals in your locality.

You have to note that rent increases during the meantime account for 78% of tenants switching homes (source)

Therefore you may incur the risk of losing a good tenant or being accused of levying an unauthorized rent increase if the rent is raised too much (or above market).

The legislation may also specify whether and how much a landlord can raise the rent in areas under rent control. (you have to keep this in mind)

When to send an increasing rent letter

Normally, tenants must receive written notice from landlords at least one month before their lease expires or is up for renewal. However, the necessary time range varies depending on the local law and your leasing agreement.

The required advance time can be as much as 30-90 days when issuing a rent increase letter to tenants.

If both parties agree, a lengthier necessary notice period may be specified in the leasing agreement.

How to write an effective increasing rent letter

An increasing rent letter is written in a business letter format. Begin your letter with your address and contact information, followed by a date and the tenant’s address, and state that you are writing to notify of rent change, provide the details of the change, and state an effective date Finish with “Sincerely,” followed by your name and signature.

REMEMBER! The primary goal of your increasing rent letter is to notify your tenants about the rent increase.

Thus, Do the following to write an effective increasing rent letter.

  • Provide your name, address, and contact information
  • Include the date of the letter
  • Include the tenant’s  names, addresses, and contact information
  • Provide the rental property address, including the unit number  if applicable
  • Make reference to the lease agreement
  • Explain the rent change by providing the old and new amount
  • Specify the date when the new rent will be effective
  • Specify whether the rent increase will affect the security deposit.
  • Give the tenant an option to vacate
  • Maintain a professional tone
  • Be honest
  • Be polite and respectful.

How to deliver your increasing rent letter

This part is as crucial as writing your letter.

Your letter must duly reach the intended tenant to be effective.

The best way to serve notification of a rent increase may be governed by unique legislation in your state. Before serving your notice via one or more of the following methods, consult an attorney and check the permissible means of notice specified in your lease:

The following are efficient ways to deliver your increasing rent letter to your tenant;

  • Delivers the notice by hand to the tenant(s) at their residence or workplace
  • Serving the tenant by certified mail ( use the mail address indicated in your lease agreement)
  • Make use of a sheriff or process server.

Increasing rent letter template

The following is the template for the Increasing rent letter

Your Name
Address
City, State, Zip Code
phone
email

DATE

[Tenant’s Name]
[Tenant’s Street Address]
[Tenant’s City, State, and Zip Code]

RE: Notice to Increase Rent

Dear [Tenant’s Last Name]

This is to inform you that the monthly rent for your rented property will be increased from [old rent] to [new rent] due to [reasons for increase-optional] effective on your next lease renewal [effective date]

Note that despite of rent increase NO additional security deposit will be required at the lease renewal.

If you do not wish to renew your lease with the new rent amount please provide the notice to that effect not later than [#days] from the date you receive this letter.

If you have any questions regarding this letter please contact me through the above email or phone number.

Thanks for your understanding regarding this matter

Sincerely

[Your name]

[Your Signature]

Landlord increasing rent letter (sample)

John Kennedy
107, East estate
Downtown, CA 14234
jk@email.com
512-700-8000

December 30, 20…

Henry Marc
100, East Avenue
Downtown, CA 10203

Dear Mr. Marc

Re: Notice to Increase Rent

This is to let you know that, as a result of the rising cost of living in your neighborhood, the monthly rent for your rental property will increase from $1,000 to $1,200 as of your next lease renewal on January 20.

Note that despite the rent rise, there won’t be any more security deposit needed when the lease is renewed.

Please give notice to that effect not later than 30 days after the date you receive this letter if you do not desire to renew your lease at the new rent level.

Please get in touch with me at the aforementioned phone number or email address if you have any questions about this letter.

I appreciate your understanding in this matter.

Best Regards

John Kennedy

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Isack Kimaro
Isack Kimaro

Editor-in-chief and founder of sherianajamii.com. Holder of Bachelor of Laws (LL.B) and Post Graduate Diploma in Legal Practice. Lawyer by profession and blogger by passion