Raising rent is a normal and necessary practice for property managers, but it’s important to make sure that it’s handled correctly. You always want to make sure that you are complying with your state and local guidelines for rent increases before you take any other steps.
A rent increase letter gives your tenant notice of an upcoming increase in their rent. Typically they are sent out to tenants with at least 60 days notice of the increase, but again, you need to check with your state and local regulations to make sure that you’re compliant with all rent increase laws.
Renters have a lot of protections when it comes to rent increases, so you want to make sure that you’re doing things by the book.
Some Protection Renters Have
Landlords Must Provide Written Notice
In order to increase rent, landlords have to provide written notice within a certain number of days prior to the increase. This is typically 30-60 days, but laws vary from state to state, so check your local laws.
Rent Cannot be Increased During the Lease Term
The rent agreed to in the lease can only be changed at the end of the lease term before a new lease is signed.
Rent Increase Must be Reasonable
Rent increases need to be considered reasonable based on the current rental market. You don’t want to lose tenants either, so make sure that you are mindful when raising rent.
Once you are familiar with the laws and have decided that you want to raise the rent on your property, you want to write a clear and professional letter informing your tenants of the increase.
Make sure to include these elements when drafting your rent increase letter:
- Date Letter is Written
- Landlord’s Full Name, Address, Phone Number, and Email
- Property Address
- Tenant’s Full Name
- Date rent Increase will Go into Effect
- Current Rent Amount
- New Rent Amount
Raising rents is a normal part of property management and it doesn’t have to cause you stress. If you make sure that you’re familiar with your local laws and handle all communications professionally you will be able to painlessly increase your tenant’s rent.