How To Tenants should be notified in writing of an increase.
Raising rents is part of being a landlord.It is a requirement that a landlord notify a tenant of a rent increase in writing and that the letter is legally binding.
Step 1: You should know the law in your state or region.
When, if, and how much you can increase the rent on your tenant is dependent on a number of factors.You need to know the rules and regulations to act legally.Unless a lease states that a rent increase is allowed, you cannot raise the rent until the lease term is up.Rent increases can occur after the proper notice period, which is usually 30 days, but varies state to state.Depending on the state laws where the property is located, there can be limitations on how much you can raise rent.Rent cannot be raised as punishment for bad behavior or as a form of discrimination.Drug abuse, criminal conviction, failure to disclose certain info, and so on are some of the behaviors that may lead to eviction.Check the landlord and tenant laws in your state.If you have a question, contact a lawyer or landlord board.
Step 2: Understand your rights and responsibilities.
You don't need to justify a rent increase to your tenant or explain it in any way.Explaining your needs and financial situation is not required.The rent increase has to be legal.If you want to increase it more than your state's landlord & tenant laws allow, you must provide proper warning, and you can't raise the rent more often than the state allows.Inform your tenant in writing and keep a copy of the letter for yourself.This is in case of a disagreement.The risk of your tenant being upset or leaving can be reduced by following good rent-increasing practices.You have the right to give your tenant 30 days' notice if they decide to leave.For confirmation, check your state landlord and tenant laws.
Step 3: Good rent-increasing practices can be used.
A big fear of raising rent is that your tenant will leave.It is possible to reduce the risk of your tenant being upset by a rent increase by taking a few simple steps.60-days notice is required before raising the rent on month-to-month tenants as well as on tenants who are on fixed leases.Send the rent increase letter 60 days before the increase occurs.If the tenant chooses to leave, this gives you time to react.Consider small, reasonable, and regular increases at the end of each lease period.Tenants often expect a small increase at the end of a lease period, whereas a $400 boost after four years could easily scare a tenant off.Many management companies will increase rental rates for new tenants if they are full.Tenants completing a lease will get an increase to the new rate when the current lease ends.If you think a tenant is considering leaving, and she is a good tenant, hold off on the rent increase.
Step 4: The tenant's name and address is what you should start with.
The first line of your letter should be the tenant's name, followed by the street address and then the zip code.All information should be correct.If you put the wrong name or spelling in a lease, it could make the tenant think the increase is for them, which could create legal difficulties.
Step 5: Pick an appropriate subject.
When writing a letter, be concise and straight-to-the-point.The rate increase is perfect.If you put the subject below the tenant's city/state/ZIP code, it would read "RE: RENT INCREASE."It is acceptable to use bold.Write "dear tenant's last name" one space down after your subject is written.This is a professional greeting.
Step 6: The opening paragraph should tell you why your rates are going up.
It does help your tenant to know that the increase is not due to greed or being exploited unfairly.If the tenant sees the increase as a simple act of greed, he may want to leave.You can say that rents have increased because of rising tax and utility bills.Rents in the area have increased by as much as $200 a month, and while we value you deeply as tenants, we will need to raise our rents to keep up with rising costs.This type of introduction allows the tenant to know that the increase is reasonable and that you value him as a tenant.
Step 7: The new rent should be outlined.
The new rent should be clearly stated in the next paragraph.There are no misunderstandings if this is stated in brutally clear and concise language."As a result of these changes, we have decided your rent will be increased to $1,000 per month."Your previous rent was $900.The new rent will take effect on January 1st.The last sentence is important.It's important to know when the new rent will start in a rent increase letter.
Step 8: Comment on the next steps.
Let the tenant know what's next in your letter if she chooses to accept or decline.What happens to her current lease, any changes, and what to do if she doesn't accept the increase are included in this."If you accept the changes in rent, all the terms of your current lease with the exception of the rent will remain."The new amount will be required before January 1st if you decide to continue.If you decide to end your tenancy, please notify me in writing as soon as possible, or before the legally required warning period for your state is.The landlord should approve new terms and conditions if the tenant agrees to extend their lease.
Step 9: Go through the letter.
Thank the tenant for his time.The tenant can contact you if they have any questions about the increase."Thank you for your time and patience" is what you can say.You can call me on my cell phone if you have any questions.You can type your name at the end.Print the letter and sign it by hand.Make a copy.
Step 10: The letter should be delivered to your tenant.
There are two ways to get a rent increase letter.You can either mail the letter or deliver it to the client.It depends on your relationship with your tenant.Mail the letter or deliver it to the client's mailbox if you feel there is a risk.Check the landlord and tenant laws in your state to make sure you give the tenant an extra five days notice if you mail the letter.