Rent Increase Letter

What is a letter regarding rent increase?

A letter regarding rent increase is a formal written notice from a landlord to a tenant, informing them about an upcoming change in the rental amount.

This letter has a dual purpose. First, it is an official communication about the rent increase. Second, it is written proof that a tenant is being notified in accordance with federal and state laws.

The present notice should be sent in advance. Thus, a sender should comply with a required notice period. The notice period may differ depending on the type of contract (commercial or residential lease), as well as the duration of the contract. For a short-term rental agreement, a rent increase letter could be sent 10 or 15 days before the actual changes. Under lease contracts for one year or more, a notice period should be between 30 and 60 days.

Landlords should keep in mind that not all lease contracts may allow a one-sided change of rent amount at any time. Some of them may allow sending such a notice only during a contract’s renewal. Another lease contract may even define a maximum threshold (in percentage) for which a rental amount could be increased yearly. This is a powerful legal tool against a landlord’s self-will.

How to write a rent increase letter?

Neither federal nor state laws define an exact format for a sample rent increase letter. Therefore, such a letter could be drafted in any way, provided the most essential elements are included.

Sender and Recipient Information

A sender of a rent increase letter template​ could be a landlord (i.e., a property’s owner) or a property management company. If it is a property’s management company, it is recommended to attach a copy of existing contractual relationships between a management company and a landlord in the attachment to the present notice.

A recipient of the notice is the tenant or tenants, depending on their number in the original lease contract.

A rent increase letter to tenant should be sent to a tenant’s mailing address. In most of the cases a mailing address is the same as an address of a rented property. However, we would recommend checking the same before sending the letter.

Changes of Payment Terms

A good example of rent increase letter should include not only the amount of a new rental payment but also the effective date. The effective date is the date starting from which a tenant should start paying the new amount. An effective date cannot be earlier than the last day of a required notice period under the original lease contract.

A text of the letter can also include changes related to other payment terms like payment method or payment schedule.

Date and Signature

A rent increase letter format always requires inclusion of a date on which this letter is being sent. This date is crucial and helps to count the notice period correctly.

At the end of the letter, a landlord should put their signature. If a property management company sends this letter on behalf of a landlord, in that case a company’s representative should include their full name and signature.

How to customize an increase rent letter at Faster Draft?

In order to personalize your legal template, follow a few easy steps below:

1. Click the button “Create Document.”
2. Answer simple questions in the questionnaire.
3. Select a document’s format—rent increase notice PDF or Word.
4. Make a payment.
5. Download a ready template online.