Sample Letter to Increase Rent for Monthly Tenants (with Template)

A Letter to Increase Rent for Monthly Tenants is a letter informing monthly tenants that the rent is increasing for their apartment. Being a landlord has several drawbacks, and one of those is the need to increase rent to keep up with rising costs and stay competitive. You must increase the rent, but you certainly don’t want to alienate your good tenants.

The way you write your letter can affect how your tenants react to the increase. This article provides some helpful tips about how to write an effective letter that encourages your tenants to continue their residency. We have also provided a format for this letter and a sample letter to demonstrate the format’s use.

• Be Sure Your Rent Increase is Legal. Each state has different tenant and landlord laws that stipulate how large a rent increase can be and how often you can increase rent. There are also laws concerning the length of the notice period. In most states, you must allow your tenants 30 days notice of a rent increase.
• Be Sure Your Rent Increase is Reasonable. For a rent increase to be reasonable, it must be determined by the local rental market. While increases in rent are necessary, you should avoid alienating your tenants with extreme increases.
• Be Sure Your Rent Increase is Fair. Using a rent increase as retaliation for bad tenant behavior or as a form of discrimination is illegal. Tenants can sue landlords who break the law in this way.

• Use a basic format for all your rent increase letters. Consistency in all your correspondence is an important part of property management. Using a format also ensures you have all the necessary information in your rent increase letter.
• Print your letter on company letterhead (optional).
• Your letter should be professional but demonstrate kindness. Greet your tenants by name rather than the word “tenant.” This small act demonstrates kindness.
• Enclose a notice for your tenant to sign indicating the new rent amount or disagreement of the new rent amount.

Your rent increase letter should contain all of the following information:

• Your name and contact information
• The property address and unit number
• A subject line like “Change in Rent” or “Rent Increase.”
• The increased rent amount
• The amount of increase
• The current rent amount

• The date the increased rent goes into effect
• A response form

Letter to Increase Rent for Monthly Tenants Template (Word)

• Understand tenant’s and landlord’s laws regarding rent increases
• Greet your tenant by name
• Use a standard basic format for your rent increase letters
• Include all the necessary information about the rent increase
• Enclose a response form for the tenant to sign indicating their choice