If you are fortunate enough to have great tenants and the rental market is strong, you may have the opportunity to begin increasing the rent on your renters. In order to increase the rent on a tenant, you must first give them a notice of rent increase. This is usually done 60 to 90 days prior to the lease agreement ending. If you have a signed rental agreement, you will have to follow the terms within the agreement. Below is a free notice to increase rent template you can use and update on your own.
Notice to Increase Rent Template
Here is a simple agreement to use if you are looking to increase the rent on your tenant during the lease renewal. You can add your own custom language within the fields. Click on image to begin.
Common language to use within a letter to the tenant explaining a rent increase should contain the following:
- Tenant’s Name or Names
- Landlord Name or Names
- Address of the Property
- Lease term within the Rental Agreement
- Rent Increase from Old Rent to New Rent Price
- Date of Letter Issued
- Signature Section
Landlord Rent Increase Notice
When Should You Send the Letter?
Most rental agreements will not allow you to raise the rent during the term of the lease agreement. However, if you want to increase the rent, you can send this notice to the tenant at least 60 days prior to the current lease term ending. In some cases, you may have to send the letter 90 days prior to the lease term ending but this should be detailed within you contract.
If you happen to be on a month to month contract or if your current lease agreement expired, you still have to give the tenant notice of the rent increase. This is depends on the state you live in but it is anywhere between 30 and 60 days notice to the tenant.
You can send the notice in a variety of ways including hand delivering it, certified mail or even via a courier service. Having a receipt it was delivered always helps if you ever need to prove you sent it.
What are Some Reasons for a Rent Increase?
The landlord can increase the rent for a variety of reasons. These include but are not limited to:
- HOA increase
- Property Tax Increase
- Strong rental market conditions
- Increase in insurance premiums
- Cost of living increase
A few reasons why a landlord can not increase the rent on a tenant:
- They did not send a letter of notification to increase the rent in accordance with state and local laws
- The rental agreement states they cannot increase the rent
- The property is within a rent controlled area
- Retaliating against a tenant
- Discriminating against a tenant as stated by the fair housing laws
- Trying to force a tenant out by dramatically increasing the rent