From time to time, landlords will want to make increases in rent on their property. For leases, even if the addition is not much, a tenant can usually expect a minor increase in rent ($20 or $25 dollars).
A tenant should be notified in advance of any increase in rent. The best way to do this is to put it in writing. We’ll show you how you can easily draft your own rent increase letter.
What should I include in the letter?
Ensure you address the letter to the appropriate person. And include your own address as well. Date the letter and then go ahead into the main body.
It is important to be specific when writing a rent increase letter. As a landlord, you should specify exact dates. When will the rent increase take effect? Is it a one-off payment or will it be paid monthly for the duration of the rent period/lease?
Why the Increase in Rent?
Nobody looks forward to an increase in their rent. Most people are backed up on all their bills already. A rent increase letter is a notification of yet another bill to pay. Your letter can have a matter-of-fact tone where you go straight to the point, or you can choose to make it softer and more human. If there is a particular reason why you need to raise the rent, you can state it in the letter. Your tenant wants to know as much as possible about this rent increase to assuage any negative feelings he may have about it. As much as you can disclose, do so. You want the transition to be smooth. And your communication in your rent increase letter will determine a lot about how your tenant reacts to the increase.
How much notice should I give?
Any landlord raising their rents should give a tenant enough time to adjust to the news and make provision for it. Generally, 30 days notice is given to tenants on a variety of property-related issues. Depending on where you are however, the laws may differ on how much notice you should give a tenant in order to increase the rent. In Canada, the Residential Tenancies Act is the key provision on rent regulation. It states that a landlord must give at least 60 days notice to a tenant where he plans to increase the rent on his property.
How much can I increase the rent by?
Now that you’ve decided to raise the rent, you should keep in mind that most countries have laws against exorbitant rent increases. You should confirm your local laws to make sure your rent increase doesn’t go beyond the statutory limit. Again, the Residential Tenancies Act says that rents cannot increase by more than 2.5 percent in a year. Be sure to make the calculations before you put it in writing.
Here are samples to get you started on your Rent Increase Letter.
Blake View Properties.
No. 75 Riverview Crescent,
Albany, New York, 85794
55 Blantyre Dr.
Albany, New York 77764
June 19, 2018.
Dear Mr. John.
We at Blakeview Properties would like to inform you of an increase in your rent that will take effect from the expiry of your current lease on the 1st of September, 2018. There will be an increase of $75.50. This takes the amount payable from $800 to $875.50 Rent will continue to be payable as before on the 30th of each month.
We would like to embark on much-needed repairs of the water system and car park in order to make the property more habitable and pleasant for all our tenants. You will recall this was part of our proposed solutions in our letter to you dated April 24, 2018, where we outlined proposed repairs to the property after several tenants had complained about the facilities. We are committed to remaining responsive to our tenants’ needs and abiding by all health and safety codes on our property.
As such, the increment has become necessary. We regret any and all inconvenience this may cause. We hope to continue to retain you as a tenant.
Do feel free to contact us with any questions or concerns you may have, at our address and phone number. Thank you.
Apt. 3b, 433 Hallen Heights,
June 19, 2018.
Dear Ms. Morgan,
RE: INCREASE IN RENT
This is to inform you that your rent rate will henceforth be increased by $100. This change takes effect from August 1, 2018. The rent will therefore no longer be $600 but $700. As usual, the rent will be due on the 30th of every month.
Please be advised.
For further questions or enquiries, feel free to contact me on (309)6444.