Let’s face it, most tenants never want to see a rent increase notice. However, sometimes it becomes necessary to raise the rent. Typically, this is done to keep up with mortgage payments and cost of living in the area.
So, when it comes to writing a rent increase letter, make sure you’re in compliance with any landlord-tenant laws. Especially as it concerns raising the rent.
You’ll also want to ensure you’re giving the tenant sufficient notice of the rent increase. Then, they have time to consider whether they’d like to renew their lease or move out. The notice you need to give your tenant will vary from state to state. Generally, you need to let the tenant know of a rent increase 30-60 days in advance of their lease ending.
Why do landlords raise the rent?
While the exact reasons vary from landlord to landlord, there are a few main reasons that landlords need to raise the rent:
- Increase in property taxes
- High mortgage rates
- Increased cost of living
- Rent increase is built into lease
- To ensure they can cover the cost of property maintenance
Is there a limit to how much a landlord can increase rent?
Unless the property is rent-controlled, there is no limit to how much a landlord can increase the rent. However, legally, there are rules that govern how and when landlords can raise the rent. (For example, they must provide 30 days’ notice of a rent increase. Additionally, they cannot raise the rent as retaliation against a tenant.)
Typically, rent increases are 1-3% year-over-year to keep up with the market. Upping the rent by a low percentage helps to not drastically raise the rent and scare off tenants.
How to write a rent increase letter?
When it comes to writing a rent increase letter, you want to ensure that you include the following important information:
- Date of the notice
- Tenant name(s)
- Tenant address
- Old rent amount
- New rent amount
- Date rent increase will start
- Required notice
- Your name & contact information
Write a Rent Increase Notice | PRINTABLE
Signing a New Lease After a Rent Increase Notice to Tenants
When it comes to writing a rent increase notice, the more time in advance you let the tenants know, the easier the process will be on you and them. If they choose to not renew their lease, they have plenty of time to give you notice. Then, you can begin the search for your new renters!
However, if the tenant chooses to accept the rent increase & renew their lease, you can get to work on putting the new lease together. If you’re a RentRedi landlord, you can even upload the lease and send to your tenant for e-signature so you can get their new lease signed ASAP!
Note: This content is not intended to substitute, replace, or be construed as professional legal advice. It is for referential purposes only and not meant to replace the advice of your legal counsel, legal representation, and or lawyer. Please consult your professional legal representation or lawyer to be sure your lease is compliant with any state and/or federal laws.