How To Write a Rent Increase Notice to Your Tenant + Template
As a landlord or property manager, you may feel awkward when it’s time to increase your tenants’ rent. Determining the correct rent estimate and then asking your tenants to pay a higher rent amount isn't easy, but it's a necessary part of any rental relationship.
A rent increase notice is a letter given to your tenant to inform them of changes in the amount of rent for the upcoming lease. The purpose is to not only convey an impending rent increase, but also to provide documentation that the notice was sent in a timely manner.
To ensure your actions are professional, use the following information to help write your rent increase notice.
How do I tell my tenants I'm raising the rent?
A written notice is the best method for delivering the news. While constructing your tenants’ written rent increase notice, make sure you remain respectful by keeping a neutral tone and saying please and thank you. Since rental increase notices provide a written record of your notice to change the leasing price, these letters should include all the relevant details tenants need to know to make their decision on whether they’ll continue renting from you or not. Make sure to clearly explain what’s happening, when the change will take place, and most importantly — how much more your tenants will need to pay each month to keep renting from you.
How do I deliver a rent increase notice to my tenants?
In some states, you may need to send the rent increase notice by certified mail, whereas in other areas a simple written notice will do. However, certified mail allows you to obtain a receipt to verify that the letter was received by the tenants. If you have legal counsel, have them review the notice to make sure you are complying with local laws and regulations.
When should I send a rent increase notice?
Make sure to refer to your local laws to determine when to send a rent increase notice, but in general, you should provide at least 30 days notice prior to the lease ending, unless otherwise stated in the lease agreement. In Washington state, landlords are required to give 60 days' written notice with the exception of certain subsidized rentals. Affordable housing units may have additional restrictions on both the amount of rent increase as well as the process involved. Check the local landlord-tenant laws in your area to ensure you are in compliance, and if you have any questions, consult with an attorney first.
How do I write a rent increase notice?
We’ve provided a rent increase notice template below for you to use. If you want to write your own, make sure to include the following information:
- Name of tenant
- Property name and address
- Landlord's name and contact info
- Date of notice
- Date rental increase will take effect
- Cost of rental increase
- Changes to deposit, if any, based on rent increase
- Current cost of rent
- Date new rent amount will be due
- Reference to the lease agreement
- Time frame tenant has to give notice if they choose not to renew
- Methods to pay this increased amount of rent
We also recommend including a yes/no check box at the bottom of your notice with a signature line so your tenants can respond right away, as well as a reply envelope so they can respond by mail.
Notice of Rent Increase
[Date of notice]
To: [Name of Tenant]
Located at: [Property name and address]
You are hereby put on notice that the monthly rent for the property stated above will be increased, effective [Date rental increase will take effect] should you choose to renew your lease agreement. The current monthly rent of [Current cost of rent] will be increased by [Cost of rental increase] for a new monthly rent amount of [New cost of rent].
Your first payment will be due [date new rent amount will be due]. You will experience a $ change to your deposit based on your new monthly rent amount. You may send payment by [methods available to send payment].
If you choose not to renew your lease, please submit this notice by [time frame tenant has to give notice not to renew]. On the day of move-out, an inspection will be completed. This will occur on the lease termination date or a date to be agreed upon at a later time.
Please reach out with any questions or concerns that you may have.
[Landlord signature] [Date]
[Print: Landlord name and contact info]
How do I collect the new monthly rent amount?
If you’re already using automated payments, you should be able to update your system with your new pricing structure. If you’re still using paper methods to pay your rent, like 80% of the U.S., you may want to consider updating to a new digital method to collect rent payments. One of the more notable options is RentPay, an online rent collection service that can be used by any renter to pay any landlord online.
More about RentPay
You don't have to be a Rentals.com customer to use RentPay — any landlord can create an account and onboard their rental properties. Once those are in the system, renters can then create accounts and pay their rent online to their landlords via eCheck, debit or credit card. Tenants select the monthly amount they owe and the date they want their funds to be sent to their landlord each month. That’s it!
While conversations about money can be uncomfortable, rental increases are common and necessary for landlords to implement. Thoroughly research your rental market and local landlord-tenant laws before sending your rental increase letters to ensure you’re following all the necessary protocol when raising the rent for your rental properties.
The information contained in this article does not, and is not intended to, constitute legal or financial advice. Readers are encouraged to seek professional financial or legal advice as they may deem it necessary.