Rent Increase Letter: Sample, Template and Guide in Writing

rent increase letterRent Increase Letter: Sample, Template and Guide in Writing

Rent increases are an unavoidable element of being a property owner. After all, you’d never be able to keep up with market value or inflation if you didn’t boost your rent. Maintaining your unit would cost more than your income, and you’d struggle to continue to do business. Raising rent doesn’t have to be unpleasant or uncomfortable if you do it correctly. In fact, your tenants are likely to expect a slight increase in their rent from year to year.

However, many landlords find it difficult to ask their tenants for higher rent. Just remember that there’s nothing wrong with doing so, but there is a specific process to follow. Notifying your renters in writing and in a timely way is the most crucial element of a rent increase. In addition, there are some items that should be included in every rent increase letter. In this post, we’ll teach you when and how to raise your rent, as well as provide you with a sample rent increase letter to help you draft your own rent increase notice.

What Is A Rent Increase Letter?

A rent increase letter is an official notice to an existing renter of a rent increase. These are usually granted 30-60 days before an existing lease expires. A rent increase letter has two purposes: it clearly conveys the rent increase to the renter and serves as formal A rent increase letter is an official notice to an existing renter of a rent increase. These are usually granted 30-60 days before an existing lease expires. A rent increase letter has two purposes: it clearly conveys the rent increase to the renter and serves as formal documentation of the increase. It is critical for all landlords to use a properly prepared rent increase notice. You must be confident that you’ve checked all the legal boxes for notifying and implementing a rental letter while safeguarding your company’s reputation.

In most cases, if the lease is not on a month-to-month basis, the landlord will not be able to raise the rent. The conditions of standard one-year leases indicate that the rent will remain constant until the lease expires. Even if the lease is month-to-month, the landlord must check the conditions to ensure that rent increases are permitted.

How To Calculate An Annual Rent Increase

The general rule of thumb is that yearly rent increases should be between 3 and 5%. However, the amount you increase your rent will be determined by local and state legislation, the rental market, and your own requirements. It may be in your best interest to increase rental prices in accordance with the local rental market — you’ll want to keep up with the competition without selling yourself short, but you also don’t want your rates to exceed other apartments in the area. Here are a few additional considerations that may influence how much you decide to raise your rent:

  • Cost of Living: Because it’s linked to inflation, you’ll probably have to modify your rent every year. When determining rental costs, keep in mind that the cost of living in your city or region is typically reflected in earnings.
  • Increases in property taxes:If your city raises property taxes, you may need to adjust your rent accordingly.
  • Maintenance Inflation:If your maintenance costs rise, your first instinct could be to raise your rent. However, before increasing your rent, you might want to look at ways to save on maintenance expenditures.
  • Property Improvements:If you’ve made significant changes to your property, you’ve almost certainly increased its market worth. This is especially true if you’ve introduced facilities to attract potential tenants.
  • Area Improvement:When a new industry enters into a neighborhood, rents rise. Take this into account when sending a rent increment letter if your neighborhood has become more desirable.

Required Rent Increase Notice Periods

Usually, you can’t raise your rent until the conclusion of the lease period, whether it’s yearly or month-to-month, and you must give adequate notice of the change. This is typically 30 days before the leasing agreement expires. However, there are exceptions to this rule. You can send a letter to raise rent prices before the lease expires if you add a condition in your rental agreement that enables rent increases before the lease expires or if your tenant agrees to a minor rent increase in return for upgrades to their unit.

Many states don’t have a statute regarding a minimum notice period (though it’s prudent to check with your local municipality). Therefore, it’s important to check laws regarding rent increase notice periods in your state before proceeding. 

What To Include In A Notice Of Rent Increase Letter

There are certain types of information that should be included in a rent increase notice.  This information will assist you in clearly communicating the change to your tenants. Include the following information in your notice of rent increase letter:

Header for rent increases 

This letter will usually come from the property owner or management company, who has the right to collect rent owing by the tenant in question. In the space provided, provide the entire name and address of the property owner, management company, or landlord, and the official postal address indicated for this party on the lease this letter concerns.

Date of the document

The calendar date on which this letter should be filed in both the tenant’s and the landlord or property owner’s/management company’s records will provide a clear reference point in the future. This date should be reported clearly.

A warm welcome

Address each tenant by name who has signed the lease contract.

The proposed increase 

Clearly state the new rent amount that will be due. Keep in mind that the rent increase cannot exceed the amount permitted under the lease.

The deadline for making a payment

Report the first calendar date on which the tenant’s new higher rent will be due.

Signature Of Effect

The landlord, property manager, or property owner who has the right to increase the rent due in this letter must sign their name.

Signing date

The date on which the letter to tenants to increase rent was signed. 

Rent Increase Letter Template 

To provide an example, here is an increase of rent sample letter in template form for you to use:

[Name/ Organization]

[Street Address]

[City, State, Zip] 

[Contact number and email address]



[Name(s) of Tenant(s)]

[Street Address of Tenant]

[City, State, Zip]


Dear [Tenant’s Name],

Thank you for entrusting us with your valuable tenancy. This Notice is to advise you that the [$ monthly rent amount] monthly rent for the unit you now inhabit, [Unit Number] at [Property Address], will rise to [$ New Monthly Rent] per month commencing on [Date of Rent Increase]. [Rent due date] is the due date for this rental payment and all future payments of [$ New Monthly Rent] should be made on the [day of the month due].

This notice will be sent to you [X days] before your next rental payment is due. If you want to keep your tenancy, you must make a new monthly rental payment of [$ New Monthly Rent]. Please be reminded that your [lease date] rental agreement’s other provisions remain in force. [OR, if applicable, make adjustments to the security deposit]

Please sign below to indicate your acceptance of the terms and to confirm your tenancy. If you do not agree, you have [X days] to express your dissatisfaction, and the lease will be terminated.

Please call the rental office and ask for [Your (Landlord/Property Manager) Name] if you have any queries about this matter.


[Landlord/property manager]

How To Deliver A Rent Increase Letter To Tenants

Read through your rent increase letter before sending it to your tenants to ensure it sounds pleasant yet professional, has all required information, and is free of errors. It’s a good idea to have it reviewed by an attorney to ensure that it complies with any municipal increase restrictions and that you’ve given adequate notice.

Your state’s regulations may dictate how you must deliver a rent increase notification. Before utilizing one or more of these methods to send your notice, consult with an attorney and check the allowed means of notice specified in your lease agreements:

  • Because you may obtain a receipt as confirmation that the renter has received the notice, certified mail is the preferred delivery option.
  • In some places, if the lease allows, you can use an email to give a rent increase letter to a tenant. While it’s convenient, it’s difficult to know whether or not your renter has received and opened the email.
  • In-person delivery helps you to verify that the renter has received the notice of rent increase letter, but it might also place undue tension on the tenant.

Simplify Property Management with AAOA

Sending a rent increase letter can be stressful for property owners, but with the right approach, it doesn’t have to be. At the American Apartment Owners Association (AAOA), we offer an innovative approach to managing properties as the nation’s largest landlord organization with more than 129,000 members nationwide. We provide an online network of resources and benefits for landlords to make property management more convenient, including extensive tenant screening, credit checks, landlord forms, rental applications, and real estate updates. Contact us today to enjoy a simplified management experience.

Like what you read and want more like it? AAOA has many more articles including ones on tenant screening. Click here to read more!