A notice of rent increase letter does pretty much what it sounds like it should – it notifies tenants of a planned and upcoming rent increase and our free rent increase notice template can help you a lot.
There is usually no limit on the amount that a rental agreement can be raised, but it is assumed that you will want the tenant to agree to the increase and sign on the dotted line.
It should also go without saying that you should give plenty of notice ahead of time, tenants are usually given 60 days notice before any rental increase.
When to use a friendly rental increase letter
Our rent increase letter notice template can be used by a property manager, agent or landlord to notify of rental increases. The notice is usually sent in the post as a physical letter, but they can be sent via email too – it all depends on the type of communication that the landlord and the tenant have.
The whole purpose is to let the tenant know when the increase will happen, usually at least 60 days notice, and how much the raise the rent will be. It also has to follow the guidelines set out in the rental agreement. A notice of rent increase letter is ideal for yearly tenants, and also month-to-month paying tenants.
Generally speaking, a rent increase notice would be used at four different times:
- The end of an annual lease
- Before a rental agreement expires
- The middle of a lease
- The end of a month-to-month lease
It is much more common for a rent increase when the tenancy agreement is either set to come to an end or if a renewal is coming up.
Rent increases are used by, and for:
- Landlords that manage their own properties
- Property managers with multiple properties
- Month-to-month paying tenants
- Annual or multi-year tenants
- Tenancy agreement renewal before a lease expires
- Altering the lease renewal date
- Encouraging a tenant not to renew the lease (when selling the property, for instance)
- Tenants that landlords inherit when on purchase of a property
What all rent increase letter notices need
Rental increase letters need certain elements to make them legal, which is why our free template is so handy. These elements also make things clear to the tenant, and so avoids confusion.
Regardless of the type of increase (monthly, yearly etc.) the components are the same – the only real difference is the dates that need to be included in the rent increase letter.
Landlord or property management contact details
These details will normally be placed at the top so that the tenant can see right away who the notice is from, and this will also make it easier for your tenant to contact you. The information contained here include your name (or company name), address, telephone number and your email address.
That day’s date
This is the date that you wrote the written notice before increasing the rent amount, and you need to include a few days for it to arrive before the start of the notice period. Realistically then, if you are giving a notice period of 60 days then you should allow for 65 days – this gives the letter plenty of time to arrive.
Change in rent notice
This is of course the subject of the letter. It is a good idea, also, to use “change in rent notice” and not “rent increase notice” as the latter can put a tenant on the defensive. The wording is important, and you can choose a different way of saying it, but it needs to convey the intention without being pushy or rude.
Wording really matters here too. “Dear tenant” is used by some, but using the tenant’s first name can be a better idea – it identifies the tenant as an actual person first, and a tenant second.
Body of the rent notification letter
The body of the rent increase letter notice can be created in any style that you prefer, but you need to be sure that you include the date that the increase will take effect. You should also state the address of the property, the amount of the rent that is currently payable. Also, state that the named person is a tenant at that property and that all other terms of the tenancy agreement will not change.
A good idea is to include a phrase along the lines of “thank you for your understanding of the rent increase and cooperation, and if they have any questions they should feel free to get in touch. This makes things look more like an agreement and less like a demand.
This is where you end the letter, before stating your name and signing. The closing lines are very standard and consist of things like ‘Thank you”, “Best regards”, etc.
The final part of the rent increase letter notice needs to be comprised of your name, signature, title (landlord, property manager etc.).
Constructing rent increase letter notices is quite straightforward if the required elements are remembered. Our free printable rent increase letter UK template, however, is going to make your life much easier.