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How to Use a Rent Increase Notice?

To use a rent increase notice, simply fill out the form with the relevant information about the property, the current rent amount, and the proposed new rent amount. Be sure to include the date when the new rent will take effect. Once the form is complete, deliver it to your tenant(s) in person or by mail.

It is important to note that, depending on your state or local laws, you may be required to give your tenant a certain amount of advance notice before raising the rent. For example, in California, landlords must give their tenants at least 30 days’ notice before increasing the rent on a month-to-month lease.

What Information Should Be Included in a Rent Increase Notice?

A rent increase notice should include the following information:

  • The address of the rental property

  • The current rent amount

  • The proposed new rent amount

  • The date when the new rent will take effect

If you are including a reason for the rent increase in your notice, be sure to state it clearly and concisely. For example, you might explain that you had to raise rent to cover the cost of recent renovations or repairs.

Once the form is complete, deliver it to your tenant(s) in person or by mail. Be sure to keep a copy for your own records.

How to Fill Out a Rent Increase Letter?

This notice should be given to the tenant at least 30 days before the proposed date of a rent increase. The landlord can hand over this notice in person or can also send it via mail. After giving the notice to the tenant, the landlord should keep a copy of it with themselves for future reference.

Usually, the rent increase letter is a brief document but it should clearly state its goal.

Step – 1

The first thing to mention in the document is the name of the tenant. It should be put in the top left corner of the rent increase letter and follow the “To…”.

Step – 2

The next thing to include is the date of the document.

Step – 3

The landlord’s name should go after the tenant’s name.

Step – 4

Next, provide the complete address of your rental property. After that, you need to mention the current rent amount and then move on to the proposed new rent amount.

Step – 5

The date on which this new rent will come into effect should be clearly mentioned in the notice. You can use this notice for any kind of rental property like an apartment, house, condo, etc.

Step – 6

Let the tenant express their disagreement with the rent increase. Include the date by which the tenant can contact you and negotiate the possible options and the ways to reach out to you.

Step – 7

The landlord should sign this rent increase letter and after that provide their contact information like telephone number, email address, or mailing address.

In What Situations Landlords Cannot Raise the Rent?

A rent increase notice can be used any time a landlord wants to raise the rent on their property. Typically, landlords will give their tenants advance notice of an upcoming rent increase so that the tenants have time to prepare financially.

There are some situations in which landlords cannot raise the rent, even if they give their tenants proper notice.

For example, landlords cannot raise the rent as the result of a tenant having exercised their legal rights (such as filing a complaint about the condition of the property).

Additionally, landlords do not have the right to raise rent if it would result in an “unconscionable” increase, as determined by a court.

Finally, some states and localities have enacted “rent control” laws that place limits on how much landlords can raise the rent each year.

If you are unsure whether or not your proposed rent increase is legal, you should consult with an attorney before proceeding.

How to Do a Proper Calculation of a Rent Raise?

There are a few different ways to calculate a monthly rent increase. The most common method is simply raising rent by a fixed percentage (such as 3%). Another option is to tie the rent increase to the Consumer Price Index (CPI), which is a measure of inflation.

You can use this calculator to figure out how much your rent should be increased, based on the method you choose.

When Is the Best Time to Give a Rent Increase Notice?

The amount of time usually depends on the state you rent your property in. For instance, states like Washington, New Mexico, Indiana, Iowa, and California require the landlord to send the rent increase notice at least 30-days in advance. Idaho and Montana have twice as little period. Around half of the states don’t have a specific statute that would touch on the period for the advance notice for rent increase at all.

The best time to give a rent increase notice is typically 30 days before the proposed date of the rent increase. This gives your tenant(s) time to adjust to the new amount and budget accordingly. Additionally, some states require landlords to give tenants at least 30 days’ notice before raising the rent. You should check your state’s requirements for the date of the notice.

What Are the Consequences of Not Using a Rent Increase Notice?

If you are a landlord who does not use a rent increase notice when increasing your tenants’ rent, you may be in violation of state or local laws. In some cases, this could result in hefty fines. Additionally, your tenants may have grounds to file a lawsuit against you.

On the other hand, if you are a tenant who has been given a rent increase without proper notice, you may have some legal options available to you. For example, you may be able to file a complaint with your local housing authority or sue your landlord in small claims court.

4 Steps to Increasing the Rent Lawfully

Once you made a decision of increasing the rent cost for your tenant(s), follow these steps to make the process smooth and lawful.

Check you lease
First of all, you should read your lease agreement thoroughly in the section about the rent increases. The document might say that the landlord can increase rent every year or at another periodicity. If this is the case, then you have the right to increase the cost of rent payments.

Calculate the rent cost that would be fair

The new cost of the rent should be justified as you can not just come up with a random number in your head. This is why you should conduct nice research first. You need to take into account the market tendencies, conditions in your area, and average monthly rent cost similar to your property.

Make sure the laws are followed

Do not forget to check the specific laws that touch on rent increases in your state – you should comply with them before considering your intention to increase monthly rent. Some states control how landlords increase rent meaning you might be required to keep the rent increase to certain limits and also notify the tenant about your intention within the specified timeframe. Even if there are no rent control laws and requirements for written advice in your state, it is always prudent to notify your tenant(s) about the upcoming change in rent price in a written form in advance.

Craft the notice and send it to your tenant(s)

If you followed all of the steps above, you can confidently send a rent increase notice to renters. While writing it, try to be nice and make sure to include the reasons for raising rent. Concerning the ways of sending the notice, go with certified mail as it will let you get notification of the receipt. Although, email works as well.