Table of Contents
- 1 The right time for a rent increase:
- 2 How to write a rent increase notice?
- 3 FAQ’s:
A rent increase notice template is sent by the landlords to their tenants to inform them an upcoming rise in their rent payment. It is a generic form with fill-in-the-blank section. This template allows the landlords to personalize the form with rental unit information, tenant’s data, new rental rates, and more. This type of notice usually occurs due to following reasons;
- when a tenant’s lease is about to end
- when a tenant’s lease require renewal
- when a tenant is on a month-to-month rental contract
The right time for a rent increase:
There are two situations when landlords issue rent increase notices. The first one is month-to-month rental agreements and second one at the end of a lease agreement. In most states, when tenant’s lease is up for renewal, landlords must provide tenants 30 days’ notice of a rent increase. Notice may have to be sent earlier like 60 or 90 days before their lease expires. However, it depends upon local and state laws and the terms in your lease. You may also like a 30-Day Notice to Vacate Templates.
Furthermore, you should consult with an attorney to make sure proper notification. This is because violating any rent increase notification laws could invalidate the increase. For month-to-month lease agreements, landlord may increase the rent to cover the following;
- standard inflation
- property upgrades
- to meet the rental market’s increased demand
How to write a rent increase notice?
A rent increase notice has various elements to make sure that everything is legally covered in order to notify your tenant of the upcoming rate increase. Your notice should be friendly and to the point. Let us discuss below the important components of a rent increase notice;
Rent increase header
The rent increase header acts as a greeting. It introduces what the tenant can expect from reading the letter. Include the following items here;
- the tenant’s name
- the property address
- return address
- landlord’s name
- landlord’s contact information
- the date when the document was made/sent
- a greeting
The concerned lease
In this section, mention the original date of the existing lease when signed by both the landlord and tenants. The type of lease like month-to-month, 6-month, or 12-month are included here. Finally, it is important to reference the section of the existing lease agreement. This shows the terms surrounding rent increases and lease renewal information.
The proposed increase
This section contains a lot of options that the tenant has for accepting to continue leasing of their property. Landlords, in some cases, offer only one option. But, it may include different terms for different lengths of the lease. Some of these terms are following;
- Rent increase amount
- Current rent amount
- Payment due date
- Notice period
At the end of the notice, explain your willingness to answer to the tenant’s queries.
In the closing of the rent increase notice, include the signature of the landlord, property manager, or property owner and the date. You should also check Rent Receipt Templates.
How much the landlord can enhance the rent?
For rent increases, there is no set maximum cap in most circumstances. The rent can be increased if the existing lease expires or the rental is in a municipality with a rent increase cap set.
How to gather the new monthly rent?
In the rent increase notice and the new lease, specify how you intend to collect the new monthly rent. Online rent collection websites using credit or debit cards and in-person or mail using checks or money orders are the different methods to collect the new rent.
In which circumstances, you should keep the rent the same?
The market, sometimes neither justify an increase nor indicate there should be a decrease in rental rates. In situations, you may want to consider keeping the rent the same for one more lease term if you want to retain your tenant or there is an economic downturn.