4 Tips For Writing A Friendly & Professional Rent Increase Letter
When your tenants renew their leases, you have the opportunity to keep their rent the same or to increase their rent. If your operating costs have increased, it makes sense to increase your tenant's rent if they agree to sign a new lease agreement. When you write and send a rent increase letter, you want to make sure you do so in both a professional and friendly manner while following all local rent increase rules.
Tip #1: Provide Enough Notice
First, you need to check your state and city laws and see how many days' notice you are legally required to provide when you increase someone's rent. In many states, you must give at least 30 days' notice; see what the number of notice days is for your state.
Keep in mind that this is the legal minimum you need to provide; you can give your tenants more notice. Giving your tenants more notice will allow your tenants to figure out how to account for the increase in their rent in their budget or time to find other housing.
Tip #2: Follow Rent Increase Rules
Second, you need to make sure the rent increase you are proposing follows the rules of your leasing contract with your renter as well as state and local rules. For example, if the lease states that you can't raise the rent until the lease expires, you can't inform your tenants halfway through the lease that their rent will be increased for the remainder of the lease; that is not legal.
In many states, there is a maximum percentage that you can raise the rent. Find out if there are any maximum limits for a rent increase in your area.
You don't want to issue a rent increase letter only to have your tenants respond with an attorney because you tried to illegally increase their rent.
Tip #3: Make the Letter Personal
When you write the letter, make it personal. Don't address the letter to the "Tenant at 123 Happy Lane"; address the letter to the names of the tenant as written on their lease document. When you close the letter, use a personal sign-off and a "thank you."
Tip #4: Make the Letter Informative
Make the letter informative. Explain why you are increasing the rent and when you will be increasing the rent. Transparency in why you are increasing the rent can make a tenant more understanding of your position.
If you need assistance writing a rent increase letter, this is exactly the type of service that property management teams are designed to assist you with. They can draft a professional and friendly rent increase letter and make sure all your tenants receive the letter.