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How to Write Rent Increase Letter: Tips & Examples

How to Write Rent Increase Letter: Tips & Examples

Provide Ample Notice

As a rental property owner, it can be difficult to raise rent from your tenants. On one hand, you want to ensure that your property remains profitable and up to date with the rental market and that you are receiving fair compensation for your investment. On the other hand, you want to maintain a positive relationship with your tenants and ensure that they feel valued and respected.

Writing a rent increase letter can be a challenging task, but with the right approach, it can be a smooth process for both the landlord and the tenants. In this article, we will provide you with tips on how to write a rent increase letter that is clear, respectful, and empathetic to your tenants’ needs, as well as a sample rent increase letter that you can use.

Provide Ample Notice

Providing ample notice is crucial when it comes to raising rent. It is essential to give your tenants time to prepare for rent increases and make adjustments to their budget. Most states require a specific amount of notice before raising rent, so check your local laws to ensure that you comply with the legal requirements.

How much notice should you give your tenants? As a general rule of thumb, 30 to 60 days’ notice is good before the monthly rent increase goes into effect. This time frame allows tenants to evaluate their finances and make informed decisions regarding their housing situation. Providing ample notice can go a long way in building trust and ensuring a smooth transition during the rent increase process.

Be Clear and Direct

When writing a rent increase letter, be clear and direct in your communication with your tenants. Avoid using overly technical language or industry jargon that may confuse or intimidate them. Instead, use simple and concise language that is easy to understand. Be clear about the date on which the rent increase will go into effect, as well as the new amount.

Explain the Reason for the Rent Increase

One of the most critical factors in writing a rent increase letter is explaining the reason for the rent increase. As a landlord, you have a responsibility to provide a reasonable explanation for the new rent prices. This helps your tenants understand that the decision is not arbitrary or personal, but rather based on the market conditions and the cost of maintaining the property.

Provide details about the factors that have led to the rent increase, such as rising property taxes, increased maintenance costs, or inflation. Being open and honest with your tenants can help to build trust and prevent any misunderstandings or conflicts down the line.

Show Empathy

Show Empathy

When writing a rent increase letter, show empathy towards your tenants. A rent increase can be a challenging and stressful experience, particularly if they are already struggling to make ends meet. By showing empathy, you can demonstrate that you understand their concerns and are committed to finding a mutually beneficial solution.

Be sure to acknowledge the impact that the rent increase may have on their budget and daily life. Express your understanding and willingness to work with them to find a solution that works for everyone. This could include offering payment plans or discussing potential cost-saving measures.

Showing empathy towards your tenants can help to alleviate any negative feelings or concerns that your tenants may have and foster a sense of trust and goodwill between both parties.

Provide Additional Value

Providing additional value to your tenants can be an effective way to make up for a rent increase. This can include offering new amenities or services that improve the living experience, such as updated appliances, improved landscaping, or on-site maintenance services. By investing in your rental property, you are demonstrating your commitment to providing a high-quality living experience for your tenants and making it easier for them to justify the increased rent.

Additionally, offering incentives or discounts can also be an effective way to offset the rent increase. This could include a reduced security deposit or rent credit for timely rent payments. By providing these incentives, you are demonstrating that you value your tenants and are committed to building a positive and long-lasting relationship.

Follow Proper Legal Procedures

It is crucial to follow proper legal procedures if you want to increase rent on your property to ensure that you comply with federal and local law. Failure to follow these procedures could result in legal disputes, which can be costly and time-consuming for both you and your tenants.

Before writing a rent increase letter, research the landlord-tenant laws in your state regarding the amount of notice required, the maximum percentage that monthly rent can be increased, rental property depreciation, rent control, and more.

Ensure you are not going against anything from the original rental agreement or current lease. Many states prevent a landlord from raising rent in the middle of an existing lease, but you may do so once that lease expires. If the tenant agrees to the new monthly rent, a new lease agreement would be signed.

Additionally, be sure to provide tenants with a written notice of the rent increase, which should include the proposed rent amount, effective date, and reason for the increase. By following proper legal procedures, you can help to ensure that the rent increase process is fair and respectful.

Offer a Grace Period

Offer a Grace Period

A grace period is a period of time during which tenants can continue paying the original rental amount before the new rent increase takes effect. This can provide tenants with some flexibility and additional time to adjust to the new rental amount.

This can help to alleviate any stress or concerns that your tenants may have and foster a sense of trust and goodwill. Additionally, a grace period can help to prevent any potential late fees or missed payments.

Keep the Letter Professional

When you write the letter, use a formal tone and language, avoiding emotional or confrontational language, and ensure that the letter is clear, concise, and easy to understand. It is also important to use proper spelling, grammar, and punctuation to convey professionalism and attention to detail.

It is important to avoid any personal commentary or opinions that may be perceived as unprofessional or inappropriate. This includes avoiding comments about tenants’ financial situations, personal behaviors, or living habits.

Include Contact Information

Including your contact information in the rent increase letter is essential to maintaining open and transparent communication with your tenants. By providing your contact information, you demonstrate your willingness to engage in dialogue and answer any questions or concerns that your tenants may have.

In addition, including your contact information establishes a sense of trust and credibility, fostering a sense of mutual respect and ensuring that the rent increase process is fair and transparent.

Encourage Communication

Encourage Communication

By encouraging tenants to reach out to you with any questions or concerns, you demonstrate your commitment to maintaining an open and transparent relationship with them. This can help to prevent misunderstandings or confusion and ensure that the rent increase process is fair and respectful to all parties involved.

By showing your willingness to engage in dialogue and actively listen to your tenants’ concerns, you can ultimately lead a more successful and sustainable living experience for all parties involved.

Example Rent Increase Letter

Here’s a sample rent increase letter. Feel free to use this as a free template for your own use.

Dear [Tenant’s Name],

I hope this letter finds you well. It is with regret that I must inform you that there will be a rent increase on your apartment, effective [Date]. The new monthly rent will be [New Monthly Rent Amount], an increase of [Amount] from your current rent.

I understand that a rent increase can be a difficult and stressful situation for tenants. Please know that this decision was not made lightly, and we have carefully considered all other options before arriving at this decision. The reason for the rent increase is due to rising property taxes and increasing maintenance expenses.

We value you as a tenant and are committed to providing you with a comfortable and well-maintained living environment. Due to the rent increase, we will be offering a complimentary upgrade to your apartment, which includes a [new refrigerator and stove]. We believe that these upgrades will add value to your living space and help justify the increased rent.

We understand that this news may come as a surprise and that you may have questions or concerns about the increase. Please feel free to contact me at [Phone Number] or email me at [Email Address]. We are committed to open communication and are happy to discuss this matter further with you.

We appreciate your tenancy and hope that you will continue to call [Property Address] your home. Thank you for your understanding in this matter.


[Your Name]



Now that you know how to write a rent increase letter, you can help to ensure that the process is fair, transparent, and successful. By following these guidelines, you can maintain a positive and respectful relationship with your tenants and increase rents efficiently.

Remember, communication and transparency are key to maintaining a healthy landlord-tenant relationship, so approach the process with an open mind and a willingness to engage in dialogue, and you are sure to achieve positive results when writing your rent increase letter.

If you’re a rental property owner and a rental increase has caused you to lose rental income, please reach out to us for information on how to get a loan for a rental property. If you are interested in selling your rental property, let us help you look into your capital gains tax rate and all the other information you’ll need to make the best decision for you. Get in touch with the experts at Short Term Shop today to find out more about successfully managing a profitable rental!

Avery Carl

Avery Carl

Avery Carl was named one of Wall Street Journal’s Top 100 and Newsweek’s Top 500 agents in 2020. She and her team at The Short Term Shop focus exclusively on Vacation Rental and Short Term Rental Clients, having closed well over 1 billion dollars in real estate sales. Avery has sold over $300 million in Short Term/Vacation Rentals since 2017. An investor herself, with a portfolio of over 100 Doors, Avery specializes in connecting investors with short term rentals with the highest ROI potential, and then training them to manage their short term rental from their smart phone from anywhere in the world.

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