How to Write a Friendly Rent Increase Notice

As inflation rises every year, rent increases are a crucial part of operating a successful rental property. But as necessary as this may be, a rent increase likely won’t come as good news to your tenants. That’s why all landlords should know how to write and send a friendly rent increase notice.

These notices ensure that you and your tenants are on the same page about upcoming changes to rent payments. Providing notice to your tenant will both fulfill your legal responsibilities and allow you to maintain a more positive landlord-tenant relationship.

To help, TurboTenant has created a comprehensive guide to help you write one.

Why Rent Increases Are Necessary

Though challenging for tenants, rent increases are necessary to keep a rental property and its operations in the black. In most areas, landlords are permitted to increase rent only at the end of a lease term. There are a number of different reasons why you may need to increase rent.

Consider the following situations:

Changes in the rental market: If prices in the local rental market increase, landlords may increase rental rates accordingly to stay competitive.

Property improvements: Landlords may raise rates to cover the costs of key property improvements, like upgrading appliances or installing a new HVAC system.

Property maintenance: The costs of maintaining a property — keeping plumbing and electrical systems in working order, for instance — aren’t static. Landlords must implement rent increases as these prices rise yearly to continue footing the bill.

Regardless of the reason for a rent increase, it’s a given that landlords should always try to maintain their rental property’s maximum value while keeping up with the ever-growing costs of operation.

As you calculate the amount you plan to raise rent, consider local rental values and the lease length. Additionally, depending on your location, raising rent may require a parallel increase in the security deposit. You’ll need to communicate these details to the tenant.

Overall, you should try to make the increase as fair as possible to both you and your tenants. As part of this process, you’ll also have to research local landlord-tenant laws that may limit rent increases, including rent control or stabilization.

Timing Your Rent Increase Notification

When should you deliver a rent increase notice?

State and local laws often affect the required notice periods for rent increases. Some areas require landlords to notify tenants a month before the increase takes effect, while other locales may require landlords to give notice 90 days in advance. Landlords should thoroughly research local landlord-tenant laws to determine when they’re legally required to provide a rent increase notice.

As a landlord, you should always follow the law. After all, one of the primary purposes of providing a rent increase notification is to maintain legal compliance. However, in addition to any specific legal requirements, it’s crucial to give tenants as much time as possible to adjust to the upcoming increase. This notification period allows tenants to either budget accordingly or seek alternate housing if they cannot afford the higher rate.

That said, the delivery method for the rent increase notice also matters. Landlords should try to hand-deliver the notice to their tenants and get a signed receipt in return.

Alternatively, they can send the notice via Certified Mail (expensive but secure and provides proof of receipt) or email (less secure but more cost-effective). If you opt for the email route, just confirm that you and your tenant agreed to communicate via this method beforehand.

In some cases, landlord software can also help you deliver a rent increase notice and collect rent online.

Key Elements of a Friendly Rent Increase Notice

Once you’ve determined the amount you’ll increase rent and the date you plan to deliver the notice, you’ll have to draft the notice. You should focus on maintaining clarity and transparency in the it and a polite, friendly tone. This tone will hopefully go a long way in aiding tenants’ reception of the news that you plan to raise rent.

Other than that, you should ensure that your rent increase notice includes the following information:

• The name and contact information of the landlord and tenant: Address your tenants directly, including their name and the property’s address. Provide your contact information as well.
• The date of writing: Specify when you wrote the notice to cover your legal bases regarding required notice periods.
• The amount currently charged and the new rent amount: List the rent increase as clearly as possible to avoid confusion.
• Why you’re increasing rent: Remain transparent and justify the increase, including evidence when available (landlord accounting software may be helpful here).
• The date the new rent amount is due: Clarify when the tenant must pay the new rent amount and any consequences — such as late fees — for overdue payments.
• A reference to the new lease agreement: You’ll likely need to wait until the end of the fixed-term lease to raise rent on an existing tenant. Remind them they have the right to review their new lease agreement before deciding.
• Required notice for the tenant to not renew the lease: If the tenant wishes to seek alternate housing, remind them of any required notice periods to terminate or not renew the lease.
• An invitation for the tenant to reach out with any questions or concerns: Encourage the tenant to communicate promptly and honestly with you should any issues arise.

Crafting a Positive Tone in Your Notice

Though rent increases are a necessary part of operating a rental property, chances are that your tenants won’t be happy to hear of a rent hike. As a result, landlords must maintain a friendly tone and a sense of professionalism while putting together a rent increase notice.

Start with a friendly greeting, and remember to express appreciation for your tenants. Have they consistently paid rent on time in the past? Did they take good care of the property during their residency? If so, consider mentioning these factors in your notice.

As you get to the critical details — the amount, reason(s), and date the increase takes effect — communicate from a respectful and understanding place. Keeping all of these factors in mind can help ease the tenant’s transition into paying higher rent.

Addressing Tenant Concerns About Rent Increases

Naturally, your tenant might have a few questions upon receiving a rent increase notice. So, you should develop a few strategies to address these common concerns before they arise. Tenants may wonder about the reason for the rent increase, whether you’ll raise the rent again in the near future, and, in some cases, whether the amount of the increase is lawful.

Landlords should be ready to address these issues politely and professionally to put tenants at ease. At the same time, try to put a positive spin on the increase. Focus on informing the tenants of any enhancements or benefits accompanying the higher rental rate, such as property renovations, landscaping, or new security measures.

You’ll also need to create a new rental agreement covering all these details when raising rent.

Offering Options and Support to Tenants

Despite your best efforts, it’s very possible that your tenant still won’t react positively to receiving a rent increase notice. To help your tenants get comfortable with the idea of paying more rent, you might offer flexible payment plans to ease the financial strain. Or, you may want to offer your tenants incentives — such as included parking or unit upgrades — to renew their lease agreement.

No matter your tenants’ decision, encourage an open communication channel by inviting tenants to reach out with any questions or concerns related to the rent increase. Delivering the rent increase notice is just the beginning of the process, so be prepared to do some extra leg work if needed.

Even if your tenant decides not to renew the lease, maintaining a good landlord-tenant relationship will help you during the rental advertising and rental application process as you secure a new tenant.

How TurboTenant Can Help

Delivering a friendly rent increase notice is key to helping landlords improve relationships with tenants and smooth the transition to paying higher rent. Landlords should strive to utilize a positive, friendly tone and always pay close attention to any relevant legal requirements. This should give tenants plenty of time to weigh their options and, hopefully, decide to renew the lease at your new rate.

For more help navigating landlord-tenant relationships, sign up for a free TurboTenant account.

With handy features such as rent collection, rental screening, financial accounting, and much more, our free property management software makes operating all kinds of rental properties easy.

Rent Increse Notice FAQ