Friendly Rent Increase Letter (Format and Example)

A Friendly Rent Increase Letter is a letter that informs tenants the rent on their apartment is increasing in a friendly and professional way. Knowing how to handle rent increases professionally helps you write friendly rent increase letters. This article discusses what you need to know about rent increases and what to include in your rent increase letters. We have also provided a format for this letter.

The sample letter shows you how to use the format to write friendly and effective rent increase letters.

Understand the Law Regarding Rent Increases

• Unless a lease specifies that rent can be increased during the lease term, you cannot increase the rent during this period. You must increase rent beginning the month after the lease ends.
• Be sure you know your state’s law regarding rent increase amounts. Check with your lawyer or your state’s landlord and tenant laws for rent increase limits. If you manage a rent-controlled property, contact the housing authority your property is affiliated with for more information.
• Most states allow rent increases once per year. Make sure you know your state laws regarding the frequency of rent increases.
• Discrimination in rent increases is illegal. Raising the rent for bad tenant behavior is also illegal.

Use Smart Practices for Rent Increases

• Although you must give 30 days’ notice for a rent increase in most states, allowing 60 days is a good practice. This allows your tenants time to give you notice they are leaving if they do not agree with the increase.
• Increase rent once a year in small increments rather than increasing rent less often in large increments. Most tenants expect a small yearly increase but are not willing to pay large increases less frequently.
• Require a written response, such as a tenant signature. This practice ensures that the increase doesn’t catch the tenant off guard.
• Deliver the letter personally or mail the letter. If you are mailing the rent increase letter, allow five days for transit. Sending the letter certified mail with a return receipt requested provides proof the tenant received it. Be sure you keep a copy of the letter.

Be sure you have all the necessary information in your rent increase letters. You should include all of the following:

• The subject line indicating rent change
• Tenant’s name and apartment number
• Statement of rent increase
• Brief reason for the increase
• New rent amount
• Amount of increase
• Current rent amount
• The effective date for increased rent
• Your name and contact information
• Request that the tenant sign the response form to indicate agreement or intent to move

Note: We have provided a sample response form, which you can find below the provided basic format for this letter.

Friendly Rent Increase Letter (Word Template)

Writing rent increase letters are an unfortunate but necessary part of apartment management. Knowing what is legal and using smart and effective rent increase practices makes the job easier. Your letters can be both friendly and effective. Feel free to use the letter format to write your rent increase letters in a professional and friendly tone.