What is a Rent Increase Letter?

A rent increase letter informs a tenant that there will be an upcoming change in rent. Rent increase notices are an important part of your rental business, but they are often not good news for your tenants. You may find yourself sending rent increase notices yearly, so in order to save you valuable time we recommend that you use a rent increase notice template. This will ensure that the way you deliver the news will be the most amenable to the tenant.

When to Send a Rent Increase Notice

Normally, landlords are required to give tenants at least one month’s written notice before their lease expires or is up for renewal.  However, the amount of time required will be determined by local laws and the terms of your lease; for instance, some areas require that rent increase letters are sent to tenants 60 or even 90 days in advance. When you are ready to prepare your rent increase notice letter, it’s sometimes recommended to work with an attorney to ensure you are complying with city and state laws as well as the terms of your rental agreement. 

What to Include in a Rent Increase Letter

Your rent increase letter should be friendly and easy to understand. You’ll also want make sure that your rent letter increase has key information including: 

  • Tenant’s name
  • Property address
  • Landlord’s name + contact info
  • Date the letter was written 
  • Date the rent increase will take effect
  • Rent increase amount
  • Current rental amount
  • Date the new rent will be due
  • A reference to the lease agreement
  • Amount of time the tenant has to give notice if they are not renewing 

Rent Increase Letter Example

Apr 21, 2022

Kim Buck, Property Manager

Lennar Property Management 

34 Kentucky Avenue

Boston, MA 02135

 

Charles and Melissa Brown

22 Myrtle Avenue

Lynn, MA 01905

Re: Rent Increase for the premises located at 22 Myrtle Avenue, Lynn, MA 01905

Dear Charles and Melissa Brown,

Your existing lease with an original start date of July 1, 2021 will expire on June 30th, 2022. Effective July 1, 2022 the monthly rent will increase from $2,000.00 to $2,050.00 per month. 

Payment for the new monthly rent will be due on July 1st, 2022 and on the first day of the month thereafter. 

Please reply by May 15th, 2022  if you agree to this rent increase, and we will arrange a time to sign the lease renewal. If you do not agree with this rent increase, you are required to notify us in writing no later than May 31st, 2022 and vacate the property by July 1st, 2022.

Sincerely,

Kim Buck

Lennar Property Management 

34 Kentucky Avenue

Boston, MA 02135

Phone Number: 705-777-8888

Rent Increase Example Template 

[Date]

 

[Property Owner, Landlord or Management Company]

[Street Address, Apartment or Suite Number]

[City/State/Zip]

 

[Lessor(s) Name(s)] 

[Street Address, Apartment or Suite Number]

[City/State/Zip]

 

Re: Rent Increase for the premises located at [insert address]

Dear (names of all tenants on the lease),

Your existing lease with an original start date of [Date of Lease] will expire on [expiration date]. Effective [Date of Increase] the monthly rent will increase from $[Old Rent Amount] to $ [New Rent Amount] per month. 

Payment for the new monthly rent will be due on [ Date First New Amount is Due] and on the first day of the month thereafter. 

Please reply by [Date]  if you agree to this rent increase, and we will arrange a time to sign the lease renewal. If you do not agree with this rent increase, you are required to notify us in writing no later than [Date] and vacate the property by [Date].

Sincerely,

[Property Owner or Management Company Signature]

[Property Owner, Landlord or Management Company]

[Street Address, Apartment or Suite Number]

[City/State/Zip]

Phone Number: [contacts phone number]

 

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