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Fillable Form Rent Increase Notice

Rent Increase Notice is a proper notice used by a landlord to notify tenants that there will be an increase in rent.

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What is a Rent Increase Notice?

A Rent Increase Notice is a document that notifies a tenant of an upcoming increase in rent. A landlord, property manager, or agent gives it to a renter 30 to 60 days before the current lease ends.

Aside from the new rate, included in a rent increase notice is the date when the increase will take effect. While there is no limit as to how much a landlord can increase the rent if the property is not rent-controlled, there are lease-specific laws in every state that landlords should adhere to. Moreover, the increase should follow any guidelines stated in the lease. Some of the reasons that contribute to rent increase include market rates, inflation, and tax changes. In general, a good standard for an annual rent increase is between three to five percent. If you are the one deciding on the increase, evaluate property-related expenses and compute for the rent increase needed to cover for the expenses. It pays to consider if the tenant can afford it, as losing a good tenant over a small rent increase is regrettable..

A landlord, property manager, or agent may write a rent increase notice at the end of an annual lease, before a lease renewal, during the middle of a lease, and at the end of a month-to-month lease. Take note that for an increase during the middle of a tenancy, a clause that allows for it should exist in the lease. Thus, it is more common to increase the rent when the lease is set to end or up for renewal.

Upon receiving the rent increase notice, the tenant can agree to the new rate or reject the increase and choose to vacate the property when the lease ends. It is highly recommended to send the notice via certified mail to collect a receipt after it ha been received by the tenant. Doing so would constitute legal notice. Keep the receipt as proof that the form was delivered.

After sending the rent increase notice to a tenant, a negotiation may take place. The negotiation phase is crucial as it will determine if a tenant will accept or reject the increase. There are guidelines that a landowner, property manager, or agent can follow when engaging in a negotiation. If a tenant is a good payer, easy to deal with, and complies with all the clauses in the lease contract, renewing the lease would be the best option. To ensure that a tenant renews the lease, reducing the amount of the rent increase may do the work. On the other hand, to encourage a tenant to not renew the lease, raising the rent amount to a number that they cannot afford or do not want to pay can encourage them to reject the increase and vacate the property after the lease — this method also prevents the need for an eviction in the future.

How to Write a Rent Increase Notice?

It is important to be professional when writing a rent increase notice. Address the notice directly to the person in charge of the lease — the person whose name appears on the contract. Accurate dates and the reasons for the increase should be clearly stated to avoid unnecessary disputes and to convey the information to a tenant without causing any confusion.

PDFRun has a Rent Increase Notice template that you may use. Follow the guides below to complete it correctly.

The top part of the notice should state the number of days before the rent increase. Make sure to check your state’s notice period and laws that prohibit you from raising the rent by a certain amount.

Write the date when the notice was created.

In the salutation, provide the full legal name of the tenant as it appears in the lease contract.

The body of the letter should have all the information about the rent increase, such as the rates and applicable dates. Then, state the reasons for the increase. Also, provide your contact information in case the tenant has questions and wants to get in touch with you.

Lastly, sign the document and provide your name as it appears in the lease contract.

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