As a landlord, you need a rent increase notice template when you have to enhance the rent of your tenant at some agreed point. Thinking of this is essay. But, it is another thing when you tell your tenant. You may hesitate to let your tenants know about this. You should create a professional and friendly rent increase notice in order to make the impact less painful.
Table of Contents
- 1 How to tell tenant that you are raising the rent?
- 2 Sending the notice:
- 3 How do you write a notice of rent increase?
- 4 The most common standard for a rent increase:
- 5 Conclusion:
How to tell tenant that you are raising the rent?
Before raising the rent of your tenants, there are some factors that you should consider. For example, if your tenant pays on time and doesn’t cause any trouble, you may lose them if they can’t afford the increase. Here are some things that you should consider;
Decide on the amount of the increase
After comparing your rates to the other properties around the area, you will decide on the new rent amount as a landlord. You also have to spend some time to research the rental rates around. This enables you to create a realistic estimate of what amount to finally decide on.
Commonly, you would believe that your property’s worth is more than the others while looking at other rental listings in your area. This isn’t always true so you have to create a well-informed estimate of the rental market with facts as your basis.
Review your lease agreement
You can’t increase the rent in case property rentals aren’t paid on a monthly basis. Leases usually last for one year. So, the tenants have to pay fix amount until the expiration of the lease. In case, your arrangement is on monthly basis then you still have to read the terms in order to ensure that you aren’t allowed to increase the rent.
Verify the notice period of your state
In your state, you have to know the municipal laws that govern rent increases. According to some laws, you can only increase rents by a specific amount. Otherwise, before the rent increase comes into effect, your only duty is to inform your tenant about the notice period required by the state.
Compose the notice
After figuring out the amount of the rent increase, you have to compose the rental increase letter. After that, send this letter via certified mail with a return receipt. This makes sure that your tenant gets the official notice. After receiving the receipt back from the postal service, you should keep it in your records. When the tenant received the notice, they can make a decision on whether;
- they agree to pay the new amount
- they send you a counter-offer
- they choose to vacate the property
Sending the notice:
The landlord has to go through the lease agreement to check whether you have the right to increase the rent or not. You don’t have the right to do so if the lease has not yet ended. Then, at first, you should wait until the lease agreement expires. But, you have the right to send a letter to your tenant 60 days before the expiry of the lease. This letter notifies them in advance that you plan to increase the rents. Then, it’s up to tenant either to move or comply.
You also have to consider your relationship with the tenant. If your tenant pays on time and doesn’t cause any trouble, you may lose them if they can’t afford the increase. Thus, you should select to waive the rent raise to avoid the trouble of looking for another tenant.
The lease agreement also has information about how you should send to your tenant. For example, a residential lease agreement states that notices such as the rental increase form must be in writing and must either get delivered in person, sent via a courier service, certified mail, and via registered mail.
However, the preferred method is sending the notice by certified mail. You can send it electronically if you have been in touch with your tenant through email. For good measure, you should also send hard copy of the notice.
How do you write a notice of rent increase?
The main purpose of a notice of rent increase is officially notifying the latter about an increase in the rental amount. As a landlord, if original agreement allows you, you can raise the rent amount. In case, there is no existing lease or your lease has already expired, then by providing an appropriate advanced warning, you must comply with the local and state laws. You may also like Late Rent Notice Template.
Furthermore, a notice of rent increase should include the following elements;
- The full address of the rental property.
- The current amount of money that your tenant has paid from the starting.
- The raised amount of money that your tenant has to pay.
- The date that indicates when the tenant has to pay the increased rent amount.
- The complete name of your tenant
- The landlord complete name
The most common standard for a rent increase:
3% to 5% is the most common standard for a rent increase. But, with regards to increasing rents, there isn’t a standard rule. You should consider the changes in the prices of market living and your own expenses, while deciding how much to raise the rent.
In conclusion, a rent increase notice template is a notice written by a landlord to a tenant. The main objective of this notice is to notify the tenant about an increase in the rental amount. It is also a formal way to keep record. You should notify your tenant about rent increase by creating a perfectly professional and friendly rent increase notice.