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Landlords and property managers should send a Notice of Rent Increase to communicate upcoming increases to a tenant’s rent officially.
What Is a Rent Increase Notice?
A rent increase notice is a written notice to your tenants informing them that their rent will increase, indicating when the increase will occur, and stating the increase amount.
Why Do You Need a Rent Increase Notice?
It would be best if you issued a rent increase notice before increasing the rent for a rental property.
Any agreements or contracts concerning a rental property must be in writing, and issuing written notices informing tenants of any change to the rent is a best practice followed by successful landlords.
More specific reasons why you need to give a rent increase notice may include the following:
- The lease agreement requires any changes to the rent to be in writing.
- The rent increase is part of a lease renewal.
- You want to ensure your tenant has ample, unambiguous notice of the change in their rent to prevent any mistakes with their rent payments.
- You want to create a clear written record that you can later use to rectify any disputes between you and the tenant involving the rent amount or the lease.
When Do You Use a Rent Increase Notice?
You should create a rent increase notice template before you increase the rent. Send the notice to your tenant at least a few weeks before any rent increase occurs.
Landlords increase rent for many reasons, including the following:
- The original lease permits the landlord to increase the rent occasionally, at certain intervals, or when certain events occur.
- The original lease expired, the tenant has remained on the premises as a holdover, and the original lease states that you can charge holdovers higher rent amounts.
- You want the original lease to renew at a higher rental rate, or you wish to notify tenants that any lease renewal will be at a higher rent amount.
What to Include in a Rent Increase Notice
Choose a high-quality rent increase notice form, which should include essential information identifying the original lease and detailed information about the rent increase.
At a minimum, a rent increase notice should consist of the following information:
- The date of the rent increase notice
- The landlord’s and tenant’s names
- A specific description of the leased premises, including the address
- Reference to the original lease, usually by date, and any amendments to the original lease
- Information about the increased rent, including the new amount and when it will be due
- A short explanation for the rent increase
- A statement confirming that the other terms of the original lease or its latest renewal will remain in effect, if applicable
Depending on the reason for your rent increase, you may also wish to include a signature line for the landlord. Sometimes, you may also include a signature line for the tenant.
How to Write a Rent Increase Notice
Follow the steps below to write a notice of rent increase.
Step 1 – Write the Current Date
Enter the date of the notice of rent increase letter.
Step 2 – Fill in Tenant Details
Note the tenant’s name and the address of the leased property.
Step 3 – Document Rent Details
Write the name and date of the original lease agreement, and provide the current rent, new rent, and date of rent increase. Also, note the new rent due date.
Step 4 – Enter Tenant Acknowledgement Due Date
Fill in the date when the tenant acknowledges the rent increase by staying on the property.
Step 5 – Provide Landlord Information
Write the landlord’s name, address, phone number, and email address.