Knowing how to write a rent increase letter can help you retain good tenants, keep up with rising costs, and stay financially competitive. Rent increases are periodically necessary to retain profitability and maintain your property appropriately. Knowing how to write a rent increase letter can make this unfortunate necessity easier for both you and your tenants.
This article discusses how to write a rent increase letter. We have also provided a format for this letter and a sample letter to demonstrate how to use the format provided to write your rent increase letters.
How to Write a Rent Increase Letter
Following these steps for a rent increase letter makes the task easier. Tenants generally respond well to professional, polite letters that explain the increase and show appreciation for their occupancy.
- Subject Line: Place your subject line beneath the tenant’s address. This can read “Rent Increase” or “Change in Rent.”
- Greeting: Begin your letter with a standard professional greeting: “Dear {tenant name},”
- Opening Paragraph: Briefly state the reason for the rent increase. Although you are not required to justify a rent increase, offing a valid explanation makes the increase easier for tenants to accept.
- Second Paragraph: Clearly state the new rent amount, the amount of increase, and the old rent amount. Be sure to write when the increase goes into effect.
- Third Paragraph: State the next steps. If all other items on the lease will stay the same, let your tenant know this. If you require an increase in the deposit amount, clearly state this information.
- Closing: Thank your tenant for their time and understanding. Let your tenant know they can contact you with questions and provide your contact information. Then end your letter with “Sincerely,” and sign your letter.
- Require a signature: Provide a form that offers two choices: “I agree with the new rent amount, effective {date}” or “I do not agree to the new rent amount, and will vacate the property by {date}.” Require the tenant to sign and return this form indicating their choice. Keep this form with your copy of the letter in the tenant file.
Using a letter format for your rent increase letters offers provides consistency and ensures you have provided all the necessary information in each letter. You can use the format provided below. Print your letter on the company letterhead.
Rent Increase Letter (Format)
Here is the format for a rent increase letter.
{your name}
{company name}
{company address}
{date}
{tenant name}
{tenant address}
Subject: Rent Increase, Apt. {tenant apt. number}
Dear {tenant name},
You are probably aware that local rents have increased because of the increased cost of {explain briefly the costs associated with rent increases}. While we deeply value you as a tenant, we find we must also increase our rent amounts to keep up with rising costs.
We are therefore increasing your monthly rent to the amount of {amount of new rent}. This amount is a {amount of change} increase over your current rent amount of {amount}. This increase will go into effect on {date}.
If you accept the increased rent amount, all other terms of your current lease will remain the same. If you agree to the change, the increased rent amount is due on or before {date increase goes into effect}. Please sign and return the provided form stating you accept the change or that you do not accept the change and you will vacate.
Thank you for your time and your understanding. Please contact me if you have any questions. You can reach me at {your contact information}.
Sincerely,
{your signature}
{your name}
Enclosure
Here is the enclosed form:
__ I agree with the new rent amount, effective {date}.
____I do not agree to the new rent amount, and will vacate the property by {date}.
{Tenant Name}
Sample Rent Increase Letter
Here is a sample letter based on the above format.
Jeffrey Bowers
Elysium Properties
3096 South Sheridan Avenue
Jackson, TN 90335
November 1, 2022
Ellen Moore
3098 South Sheridan Avenue, Apt. 203
Jackson, TN 09335
Subject: Rent Increase, Apt. 203
Dear Mrs. Moore,
You are probably aware that local rents have increased because of the increased cost of taxes and utilities. We have also completed property improvements designed to make your tenancy more enjoyable. While we deeply value you as a tenant, we find we must also increase our rent amounts to keep up with our rising costs.
We are therefore increasing your monthly rent to the amount of $1,200. This amount is a $100 increase over your current rent amount of $1,100. This increase will go into effect on January 1, 2023.
If you accept the increased rent amount, all other terms of your current lease will remain the same. If you agree to the change, the increased rent amount is due on or before January 1, 2023. Please sign and return the provided form stating you accept the change or that you do not accept the change and you will vacate.
Thank you for your time and your understanding. Please contact me if you have any questions. You can reach me at (736) 992-3405.
Sincerely,
Jeffrey Bowers
Jeffrey Bowers
Enclosure
Rent Increase Letter (Word)
- Be professional and polite. Let your tenant know you value their tenancy.
- Include a subject line
- Explain the increase
- Clearly state the new rent amount, the amount of the increase, and the current rent amount
- State any other changes or provide verification that all other lease terms will still apply
- Ask for verification of agreement on provided form
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