Friendly Rent Increase Letter to Tenant (Sample Letters)

Rent increments are practically inevitable for landlords due to the ever-changing dynamics of the real estate sector. Unfortunately, these changes to the rent cannot be implemented with due diligence. A rent increase letter is one way of ensuring landlords are compliant with the procedure for increasing rent. It is written to relay this information to the tenants and acts as a formal notification to the tenants.

Rent is ordinarily increased between 2-5% of the current rent. The letter is primarily used for month-to-month rental agreements, and it can only be used with standard (fixed) leases if the lease is near its expiration. If the proper procedures and regulations are followed, the landlord can increase rent without negotiation, and they ought to be aware that tenants can accept or reject the changes.

A rent increase letter to tenant is a formal letter used by landlords to communicate to tenants about an increment in their rent. It serves as a formal notification to renters of the increment and must be issued in accordance with the terms of the lease and applicable state/local tenant laws. However, it is typically sent between 30 to 60 days or an applicable state notice period before the existing lease ends.

A rent increase letter is alternatively referred to as:

• Rent Increase Notice
• Notice of Rent Increase Form

Below is our collection of sample letters for an increase in rent. In this comprehensive resource, we provide you with a selection of professionally crafted letters that can assist you in effectively communicating a rent increase to your tenants. By utilizing these samples, you can benefit from their clarity, structure, and adherence to formal language, ensuring a professional and respectful tone throughout your communication.

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Landlords will commonly raise rent due to yearly rises in maintaining the property. Therefore, a rent increase may be a landlord’s solution to offset the rise in expenses.

A favorable rent increase can be conducted as follows:

Decide on the new rent

Before increasing rent, make sure that the increment will not drive your tenants away, and as a result, it is best to first compare your current and proposed rent with other similar properties in the area. An online search of rental rates in your area using reliable websites is a quick way of completing this step. Use the following criteria in your searches; Address the number of bedrooms and specialties such as houses with swimming pools, parking, etc.

Check your agreement

Next, consult the rental agreement signed by the tenant and determine whether it is a month-to-month lease or fixed lease, after which lookout for applicable terms and conditions of the rent increase. If the agreement allows you to implement rent increases, proceed with the process.

Check your state’s notice period

Being compliant with the law is strictly mandatory when increasing rent, otherwise a landlord may be exposing themselves to legal ramifications. Most states will have laws dictating the notice period landlords are expected to give their tenants when increasing rent. Also, look out for municipal and county laws. It is always advisable for landlords to issue enough notice, which often may be longer than the state requires. Ample notice is a good way of retaining your tenants and reputation as a landlord.  

Consider factors that justify rent increases

Even though there are no regulations on how much to increase rent, it is always rational to justify the increase. Therefore, tenants will more than likely want to know the reason(s) for the increment. Some factors to consider are inflation, increased maintenance costs and utility bills, renovations and added amenities that increase the property’s market value, landlord insurance, HOA (homeowners association) dues, and increased property taxes (state or local).

Write and send the form

Once the rent increment has been established and all legal and contractual terms met, the landlord can craft the rent increase letter. Send the letter by the use of certified mail so that you can receive a return receipt which is kept as the official record that a notice was sent to the tenant and they received it. You can also send the tenant pamphlets of other similar properties to show why the rent increase is justified.

A rent increase letter should communicate the landlord’s intention to increase the rent. While the specifics often differ from one circumstance to another, basic information ought to appear the same in a typical rent increase letter to a tenant.

The following are steps to use when writing a rent increase letter:

Section 1: Header

The first section of the rent increase letter should be the header. Note that the letter must be formatted as a formal letter, so it must indicate the sender and the recipient. Therefore, the landlord’s name and contact details (address and phone number) should precede, followed by the date. After the date, indicate the tenant’s full name and property address.

Section 2: Greeting

After the tenant’s details, greet the tenant by referring to them by their names. Use a salutation like “Dear” followed by their full names. A subject line indicating that the letter is a rent increase letter can also be added.

Section 3: The concerned lease

The following section should refer to the initial lease agreement signed by the landlord and the tenant and a statement of when the increment is expected to start.

The following information should be given:

Lease effective date: State the exact date as on the original lease agreement. This is essential in letting the tenant know that you reviewed the agreement and the increment complies with the applicable agreement.

The date the rent increase will take effect: Next, indicate when the tenant should expect to start paying increased rent amounts if they choose to accept the new rent price.

Section 4: The proposed increase

Now that the tenant is aware of the matter, proceed to break down the details surrounding the rent increase. This will include indicating associated amounts and notice period.

For example, consider providing the following information:

• Current rental amount: Indicate the tenant’s current amount as rent. This figure can be obtained from the original agreement.
• Required dollar amount: State the revised rent amount and indicate it in figures and the appropriate monetary units.
• Payment due date: The next item should be the date after the increment when the tenant is expected to make their first payment: State the exact day, month, and year for clarity.
• Amount of notice period: After the payment due date, state the number of days the tenant has to accept or reject the increment – typically, the notice period is between a month or two before the first payment due date.

Section 5: Body of the letter

After informing the tenant of the rent changes you intend to implement, the rent increase letter to the tenant will provide the support and additional information relevant to the rent increment and revision of the lease. A rent increase letter should be friendly and formal, considering a rent increase is not the good news any tenant would like to hear.

Consider discussing the following:

• Inform them that the rent increase notice is not a punishment: Make sure they understand that the rent increase is not a consequence of their actions but more of inevitability. Also, let them know they are still getting value for their money by outlining the exact reason for the increment. This helps in ensuring that tenants do not move out and may cause the landlord to lose more money than they would’ve without increasing rent.
• Request confirmation from the tenant: Always ask tenants to confirm their decision as soon as they make one. Indicate the most appropriate means to issue the confirmation; email, mail, or in-person.
• Offer means for the tenant to contact you: After being notified of the increment, it is more than likely that tenants will have specific queries they would like answered. Therefore, it is advisable to include a means of contact in the rent increase letter to tenants.

Section 6: Letter closing

The last segment of the rent increase letter to tenant is the letter’s closing. The letter should be formally concluded by providing a complimentary close followed by a signature and date of signing. The letter can be signed by the landlord, property manager, or someone with the appropriate authority.

Knowing when to increase rent is essential in ensuring the landlord doesn’t get backlash from their tenants and making justifiable increments. Therefore, it is always imperative to monitor the market, compare current rates, and review apartment listings to determine the right time to increase rent. Other considerations are rent control and stabilization statutes that govern rent increase limits in some cities. Finally, a rent increase letter to tenant must be sent on time relative to the effective date of the rent increase.

Procedure to notify the tenant at the end of the lease

Ordinarily, for standard and fixed leases, the letter should be sent 30 to 60 days before the expiration date. However, the notice period can be more extended, up to 90 days, depending on the terms of the agreement, rent increase laws, and the amount of increment – high increments require more extended notice periods.

Procedure for a month-to-month lease

Rent increase letters should be sent 30 days before the lease expiration date for month-to-month leases. A month-to-month lease will typically be more flexible and easier to increase rent since no long-term contractual obligations tie the landlord to the lease.

Rent Increase Letter Templates

Anytime you write a rent increase letter to tenant, it is best to make it as comprehensive and direct as possible. Below are tips that landlords can utilize when writing rent increase letter to tenant:

Be knowledgeable of market trends

To crop up a fair rent increase and create a letter that effectively communicates the landlord’s intent, check the current market trends within the locality. This includes rental rates of similar property, tenant preferences, local regulations, etc. Remember that you may be required to justify the increment, so it is only advisable to ensure you have the correct information. 

Incorporate new payment methods

If the landlord has adopted new payment methods, they should declare it to tenants in the rent increase letter. If the original lease only listed checks and cash but you would like to transition to modern payment methods, state it and provide details for tenants to use.

Keep the documents signed

Always sign the rent increase letter and attach it to the original lease as an appendix. These documents are crucial so there shouldn’t be any misunderstandings or legal battles in the future.

Different methods can be used to deliver rent increase letters to tenants. Some states have specific delivery requirements for sending notices, such as a rent increase letter. However, it is advisable to use methods that can be used in case the document has to be referenced later on. Such methods include certified mail with a return receipt, email (in states where permitted), and in-person. Certified mail and in-person deliveries are the most preferred methods.

About This Article

Authored by:

Megan V.

Award-Winning Resume Writing, Cover Letters, Executive Bios, Public Relations

Megan V. is an acclaimed resume writing professional, celebrated repeatedly as one of the "Top Ten Best Resume Writers in the Bay Area," a title she proudly reclaimed in 2023. Transitioning from her extensive experience owning and steering a public relations agency since 2009, Megan has tailored her writing prowess to cater to individuals seeking standout resumes, compelling cover letters, and detailed executive bios.