ByAn In-Depth Guide to Writing and Mailing a Rent Increase Letter
Are you a landlord who needs to raise the price of rent because of inflation, property tax increase, or any other reason? While increasing rent is always tricky, knowing how to write a good rent increase letter can help a lot. If you’re not sure what to include in your letter, how to format it, or when to send it, and get all the answers.
Check out our article to learn how to compose your rent increase notice and find out how to mail the letters to your tenants effortlessly.
When Should You Send Rent Increase Letters to Tenants?
Before you increase the rent, you need to make sure you’re following the rules and regulations of the state you have tenants in.
You should review the law and the original lease agreement to find answers to the following questions:
| Questions | Brief Explanation |
| How frequently are you allowed to increase the rent? | Landlords tend to raise their rent prices once a year |
| Can you increase the rent during the term of the lease, or do you have to wait until the end of the lease? | Landlords who have long-term tenants typically have to wait until the lease expires before increasing the rent unless the lease agreement says otherwise. When it comes to month-to-month lease agreements, landlords have the right to raise their rent at the beginning of each month |
| When should you notify the tentens? | In most states, landlords are obligated to inform tenants about rent increase at least 30 days in advance |
| What is the maximum limit for a rent increase? | Most states don’t impose a limit unless the unit is rent-controlled. The rent increase limit for rent-stabilized units is different in every state |
Should You Write a Friendly Rent Increase Letter?
Two main goals of the rent increase letter are:
- Informing the tenant about the change in price
- Documenting that change
Writing this type of notice is challenging because you need to compose a letter that’s short and formal but also polite and friendly. Tenants certainly won’t be happy about the price increase, which is why they should at least feel appreciated. Make sure to show empathy through your letter without making it too long.
You should start your letter by addressing the tenants by their name instead of writing just “Dear tenant.” In the first paragraph, try to let the recipients know that you value them as tenants and explain why you need to increase the price of rent.
The way you end the letter is also important. Common formal closings—such as Yours truly, Kind regards, and similar—can be rather cold and impersonal. Instead of signing off with one of those closings, you should write something like this:
- Sincerely
- Thank you
- All the best
What Info Should Your Notice of Rent Increase Letter Include?
While your letter should be short and straight to the point, you still need to make sure to include all the relevant info, such as:
- Tenant’s name
- Date of writing the letter
- Property address
- Your name and contact info
- Date the price increase will take effect
- Current cost of the rent
- Future cost of the rent
- Your signature
You can even include a form at the bottom of the letter that a tenant can fill out and return. For example, you can include these two options:
- I agree with the rent increase
- I don’t agree with the rent increase and will move out by X date
There are numerous rent increase letter templates online that you can use if you’re not sure how to structure your letter.
How To Send the Rent Increase Letter
Once you compose the rent increase letter, you can either hand-deliver it or send it by snail mail. If you choose the second option, you need to know how to address your letter the right way.
In the upper left corner on the front of the envelope, you should write the return address like this:
- First line—name
- Second line—street address
- Third line—city, state, and ZIP code
You should write the tenant’s address in the middle of the envelope and place the stamps in the upper right corner.
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- Type in the tenant’s name and address
- Upload your letter
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