How to Write a Rent Increase Letter (with Samples)
Use these sample rent increase letters as templates for your formal notification. How to Write a Rent Increase LetterOne of the most dreaded letters to compose is the rent increase letter. A tenant and landlord relationship is a delicate one and when sending correspondence of this type, it is important to make sure it is correctly done.
In order to have a happy tenant, the landlord and tenant must communicate well. Unfortunately, there comes a time when all landlords will need to increase the rent. For some it is keeping up with the market value or for others it is to offset the price of costly repairs. This letter must be worded very carefully to ensure that the transition if smooth.
While writing such a letter, it is important to remember that this is a hard working person on the other end. Most people are already maxed out on bills and stress levels and this type of letter might not be received well. Everyone has demands with their jobs and home lives. A letter written incorrectly could lead to vacancy loss, as the landlord will need to find a new tenant. Make sure to be courteous, as a rental increase letter is never welcomed.
State the Reasons
The rent should be raised at the end of the lease period. This should be spelled out in the verbiage of the lease. When beginning a rent increase letter, remind the tenant of the evaluation period and that they are within this time frame. Next, it is important to explain why the need for a rental increases. If it is inflation or property tax increase or inflated repairs, be honest with the tenant. Honestly goes a long way in a letter of this nature. If the tenant feels that the landlord is backed into a corner, and not just being greedy, they are less likely to want to move.
Flattery Goes a Long Way
If the tenant has been a model one, make sure to give them compliments. Those who take care of the property are hard to come by, so make them feel important and let them know how much they are appreciated. It’s hard for someone to be mad when they are being flattered.
Be Specific On Amount
Be specific in how much the increase will be and when it will take place. Never be vague in a letter like this, but always spell everything out in black and white. It is also wise to give a couple months’ notice to the tenant. This may also give the landlord a bit of time to find a new tenant, should they choose to leave. Finally, let the tenant know that the increase was not a stress-free conclusion and that your desire is for them to continue as renters. See sample letter below: Sample 1 - Rent Increase LetterName of Landlord Address of Landlord City, State, Zip Code DATE Name of Tenant Address of Tenant City, State, Zip Code RE: Notice of rent increase Dear Name of Tenant(s): I want to take a moment and let you know how much I value both of you as tenants. It is not easy to find tenants that pay their rent on time and also take care of the property so well. Unfortunately, I have experienced some expenses with my rental properties that are prompting the need for a rental increase. Your lease will officially be over on [DATE]. I would like for you to continue as my tenants, but an increase of $75 will be applied to the new lease term. The rent is currently $950 and under the terms of the new lease agreement, will need increase to $1,025. Should you wish to go month to month or to sign a new agreement, this new amount would be required. Again, I thank you for taking care of my property and being the model tenants that you are. I hope that you will continue to remain a tenant at [ADDRESS]. If you have any questions, please feel free to call me at [555-209-5934]. Sincerely, Signature of Landlord Printed Name of Landlord Sample 2 - Rent Increase LetterName of Landlord Address of Landlord City, State, Zip Code DATE Name of Tenant Address of Tenant City, State, Zip Code RE: Notice of rent increase Dear Name of Tenant: This letter is to formally inform you that starting on [DATE], the monthly rent for the house you currently occupy at the above address will be raised $50 from [AMOUNT] to [AMOUNT]. The payment is due on the third of each month. Please note that I am informing you 60 days in advance. As before, you can pay with a personal check or with cash. If you pay in cash, I will give you a receipt. I am forced to raise the rent because the local property taxes in this area have been increased. Your monthly rent is the only change in the original rental agreement. I have enclosed two copies of this letter. If you wish to remain in the house, please sign one copy and return it to me at my above address. If you wish to terminate your occupancy of the house, you must be moved out in 60 days from the date of this letter by [DATE]. I hope you remain in the house. You have been an exemplary tenant and keep the house in good condition. I can be reached at [Phone Number] or by [Email Address] if you have any questions. Sincerely, Signature of Landlord Printed Name of Landlord Signature of Tenant _______________________________ Date_______________ By Andre BradleyRelated Articles
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