a rent increase notice" width="1024" height="659" />Need to notify your tenants that rent is going up? Use our free, downloadable rent increase letter to properly inform your renters.
a rent increase notice" width="1024" height="659" />
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A rent increase letter informs a tenant of an upcoming change in rent. Rent increase notices are a normal and important part of your rental business, but they’re far from good news for your tenants — and that means they’re a chore for landlords.
Having a standard rent increase notice template saves you valuable time and ensures you’re sending a consistent message when renewal time rolls around. Our downloadable rent increase letter lets you document the new rental price and give notice to your tenants.
Download our free landlord notice templates , including a rent increase letter, late rent notice and lease renewal letter.
Note: This guide is for informational purposes only. Zillow, Inc. does not make any guarantees about the sufficiency of the information in or linked to from this guide, or that it’s compliant with current, applicable or local laws. Landlord-tenant laws change rapidly and may be regulated at the federal, state and local levels. This resource is not a substitute for the advice or service of an attorney; you should not rely on this resource for any purpose without consulting with a licensed attorney in your jurisdiction.
When raising rent, make sure the amount is competitive yet reasonable compared to similar rentals in your local market. According to the Zillow Group Consumer Housing Trends Report 2018 , when renters experienced a rent hike, the typical increase in monthly rent was $125 for those who moved in the past year and $50 for those who stayed put.
Nearly 8 in 10 renters (78%) who move from one rental to another experience a rent increase prior to their move. And for about two-thirds of those renters (69%), the decision to move is directly tied to the rent hike.
Typically, landlords are required to give tenants at least a month’s written notice before their lease expires or is up for renewal. However, the required time frame differs according to local law and depends on the terms of your lease. When sending a rent increase letter to tenants , the required lead time can be as long as 90 days in larger cities. The lease can specify a longer required notice length if the parties agree. When you’re ready to prepare your rent increase notice letter , work with an attorney to make sure you’re complying with the terms of your rental agreement and the rent increase laws for your city and state.
A friendly rent increase letter can make all the difference when addressing this topic with your tenants. Our rent increase notice template can help you put together a notice for your tenants that’s easy to understand. When writing a rent increase letter , be sure to include:
Here’s a sample of a rent increase letter:
Note that some states have specific rules for handling rent increases. Before you create your rent increase letter, check with your attorney to ensure you’re following local and state guidelines.
Before you send your tenant a rent increase letter , read it over to make sure it sounds friendly but professional, includes all necessary information and is free of typos. It’s a good idea to have your attorney review it to make sure it’s compliant with any local increase limits and that you’ve given enough notice.
Your state might have specific laws about how you can deliver a rent increase notice . Check with an attorney and review the permitted methods of notice listed in your lease before delivering your notice using one or more of these methods:
Certified mail is the preferred delivery method, because you can collect a receipt as proof that the tenant has received the notice.
Email can be used to deliver a rent increase notice in some states, if the lease allows. While it’s certainly convenient, it’s hard to confirm that your tenant has received and opened the email.
In-person delivery allows you to confirm for yourself that the tenant has received the notice of rent increase letter , but it can also put more pressure on the tenant.
If your tenant decides to accept the new monthly rent amount, either by signing an amendment and renewing the lease or by entering into a new lease at the increased rate, make sure you both have a copy of the executed documentation. If you use a rental management tool, you’ll want to update the online rent collection, automatic reminders and records with the new rent amount.
If you collect rent online: Zillow Rental Manager makes it easy to set up online rent payments for your tenant and keep payment records.
If you collect rent offline: Be sure to keep an accurate payment record (for example, by providing a rent receipt ) for any payments collected via cash, check or money order.
