Fillable Form Rent Increase Notice

What is a Rent Increase Notice?

A Rent Increase Notice is a document that notifies a tenant of an upcoming increase in rent. A landlord, property manager, or agent gives it to a renter 30 to 60 days before the current lease ends.

Aside from the new rate, included in a rent increase notice is the date when the increase will take effect. While there is no limit as to how much a landlord can increase the rent if the property is not rent-controlled, there are lease-specific laws in every state that landlords should adhere to. Moreover, the increase should follow any guidelines stated in the lease. Some of the reasons that contribute to rent increase include market rates, inflation, and tax changes. In general, a good standard for an annual rent increase is between three to five percent. If you are the one deciding on the increase, evaluate property-related expenses and compute for the rent increase needed to cover for the expenses. It pays to consider if the tenant can afford it, as losing a good tenant over a small rent increase is regrettable..

A landlord, property manager, or agent may write a rent increase notice at the end of an annual lease, before a lease renewal, during the middle of a lease, and at the end of a month-to-month lease. Take note that for an increase during the middle of a tenancy, a clause that allows for it should exist in the lease. Thus, it is more common to increase the rent when the lease is set to end or up for renewal.

Upon receiving the rent increase notice, the tenant can agree to the new rate or reject the increase and choose to vacate the property when the lease ends. It is highly recommended to send the notice via certified mail to collect a receipt after it ha been received by the tenant. Doing so would constitute legal notice. Keep the receipt as proof that the form was delivered.

After sending the rent increase notice to a tenant, a negotiation may take place. The negotiation phase is crucial as it will determine if a tenant will accept or reject the increase. There are guidelines that a landowner, property manager, or agent can follow when engaging in a negotiation. If a tenant is a good payer, easy to deal with, and complies with all the clauses in the lease contract, renewing the lease would be the best option. To ensure that a tenant renews the lease, reducing the amount of the rent increase may do the work. On the other hand, to encourage a tenant to not renew the lease, raising the rent amount to a number that they cannot afford or do not want to pay can encourage them to reject the increase and vacate the property after the lease — this method also prevents the need for an eviction in the future.

How to fill out a Rent Increase Notice?

It is important to be professional when writing a rent increase notice. Address the notice directly to the person in charge of the lease — the person whose name appears on the contract. Accurate dates and the reasons for the increase should be clearly stated to avoid unnecessary disputes and to convey the information to a tenant without causing any confusion.

PDFRun has a Rent Increase Notice template that you may use. Follow the guides below to complete it correctly.

The top part of the notice should state the number of days before the rent increase. Make sure to check your state’s notice period and laws that prohibit you from raising the rent by a certain amount.

Write the date when the notice was created.

In the salutation, provide the full legal name of the tenant as it appears in the lease contract.

The body of the letter should have all the information about the rent increase, such as the rates and applicable dates. Then, state the reasons for the increase. Also, provide your contact information in case the tenant has questions and wants to get in touch with you.

Lastly, sign the document and provide your name as it appears in the lease contract.

Frequently Asked Questions About A Rent Increase Notice

What is the purpose of a Rent Increase Notice?

A Rent Increase Notice is a notice put forward by a landlord for the purpose of increasing rent. A landlord may elect to increase rent if he or she thinks that an increase would be fair and justifiable based on increases in operating costs, inflation, or reasonable levels of profitability.

A Rent Increase Notice is often issued when tenants have resided in a unit for many years without an increase.

How much notice do I have to give before putting forward a Rent Increase Notice?

Landlords are required to give tenants one full rental period's notice or 30 days before increasing rent. Rent increases cannot take place at any less than six months, nor more than twelve months.

For example, if a tenant pays rent on the first of each month and his or her Rent Increase Notice is for an increase effective August 1st, the tenant would have to be given notice on or before July 1st.

When to submit a Rent Increase Notice?

A Rent Increase Letter can be submitted anytime during a tenancy. Rent Increases do not have to coincide with the rent due date.

A Rent Increase Notice can be issued as soon as a tenant moves into a unit and every time after that as long as it is one full rental period in advance of when rent is increased or 30 days from when a Rent Increase Notice is submitted, whichever is longer.

Landlords need to inform tenants ahead of time regarding the rent increase for the tenants to prepare themselves financially.

What are rent increase guidelines?

Here are some guidelines to follow regarding a rent increase:

• Rent increases cannot take place before six months have passed or more than twelve months have passed since the last rent increase unless the Rent Increase Notice is being issued because of an extraordinary increase in operating costs, inflation, or reasonable levels of profitability.
• Rent increases must take into account the tenant's ability to pay the rent. Rent increases are not allowed by landlords if they would cause financial hardship for the tenant.
• Landlords must show that the increase is reasonable in that it does not exceed what other landlords charge in similar buildings or housing complexes in that geographic locale for similar units.
• A Rent Increase Notice must be given at least one month in advance of the rent increase date.

Can you mail a Rent Increase Notice?

Yes, you can mail a Notice of Increase Rent to your tenant. Use a certified or registered letter service to ensure that the Rent Increase Notice gets delivered.

In case the tenant disputes your rent increase to a court or authority, he or she cannot deny that you sent a prior notice.

Does Rent Increase Letter need to be notarized?

Generally, a Rent Increase Notice does not have to be notarized. However, it may be efficient for a Rent Increase Notice to be notarized to increase its authenticity.

Does a tenant need to sign a Rent Increase Notice?

No, a tenant does not need to sign the Rent Increase Notice from a landlord.

A Rent Increase Notice is not a contract or agreement. It only serves as a written notice of the landlord's intent to increase the rent payment due to specific reasons stated in the letter.

What should I do if my tenant refuses to pay the rent increase?

While some rent increases are not disputed by tenants, it is possible for a Rent Increase Notice to be contested.

If your tenant refuses to pay the rent increase, try using other methods to reach an agreement with them or provide them legal assistance so that if they end up in court, you can show evidence of your Rent Increase Notice.

Can Rent Increase Letter be extended to tenants?

No, Rent Increase Notice cannot be extended. Rent increases must occur either on lease renewal or one year from the last rent increase, whichever is sooner.

Rent Increases can only happen every twelve months and need to stay within Rent Control guidelines and deadlines.

Why do I need to send a Rent Increase Notice by certified mail?

A Rent Increase Letter needs to be sent via registered or certified mail to prove that the notice was received and agreed to by the tenant. A certified mail leaves trackable data that can be used in court to prove that a Rent Increase Letter was delivered to the tenant.

It is also useful in case the Rent Increase Notice is not disputed by tenants and ends up in court. It will serve as evidence of communication between you and your tenant regarding the increase in rent payment.

Can you email a Rent Increase Notice?

Yes, you can email a Rent Increase Notice to your tenant. It is feasible if your tenant has access to email or any digital platform. If you do so, you must ensure that the Rent Increase Letter is received and read by your tenant by letting them acknowledge your email.

Although sending a Rent Increase Letter by email is more convenient, sometimes it is not the best method. There may be issues that may arise, such as your email ending up in the spam or being deleted, or your tenant does not know how to navigate email.

You need to consider these factors before deciding to send your Rent Increase Letter via email.

Can you send a Rent Increase Notice in person?

Yes, you can send a Rent Increase Notice in person. It is the best method in sending such a document.

Sending a Rent Increase notice in person enables your tenant to ask questions or for more details about the rent increase. This way, both you and your tenant can come up with a reasonable agreement on how much they can pay as rent.

This method is also more reliable in case there are issues regarding Rent Increase Notice delivery or disputes regarding Rent Increase notice claims.

What is Rent Control?

Rent Control is a system that limits the maximum rent payment increase landlords can charge their tenants.

It also places restrictions on evicting tenants, even if the Rent Increase Notice is not disputed or paid by tenants. Some Rent Control policies place limitations on how much and when Rent Increases can happen to protect tenants' rights to fair rent.

Rent Control policies are implemented at the city level and differ from one city to another. Rent Control guidelines need to be consulted before deciding to send Rent Increase notice letters.

Generally, Rent Control policies are helpful for tenants because it holds landlords accountable for their actions. However, Rent Control policies are not always the best solution for rent increase notice claims. Renters who choose rent-controlled houses may end up paying above-market rent prices due to rent increases or stagnation every time Rent Control renews its policy.

Can I evict a tenant who ignores my Rent Increase Notice?

Yes, you might be able to evict a tenant who ignores your Rent Increase Notice. However, consider talking to the tenant as there may be reasons why he or she has not responded to your letter yet.

Take note that even if Rent Increase Notice is ignored, you cannot evict the tenant immediately. A Rent Increase Notice must always be sent with the proper number of days before eviction proceedings are started. Otherwise, the tenant may dispute the Rent Increase Notice or claim.

If you are thinking of evicting the tenant, make sure to consult your state's Rent Control or Rent Stabilization policies, if any.

What is Rent Stabilization?

Rent Stabilization is a rent control policy that prohibits unfair rent increases. Renters under Rent Stabilization policies are entitled to notice if their rent is going to increase by 10% or more within 12 months.

Rent Stabilization policies are implemented at the city level and differ from one city to another. Under it, rent increases cannot exceed a certain percentage per year, with the exception of special capital improvement increase cases.

Rent Stabilization is more moderate when it comes to setting rent control policies. It allows landlords to increase rent based on the current market value price, giving landlords the freedom to set rents that are competitive with the current market rate. It is different from Rent Control which is more demanding as it limits landlords to rent increases.

Will Rent Increase Notice turn off your tenants?

It depends on the increase rate you are proposing. Your tenant may feel that it is unfair to increase rent if the Rent Increase Notice is too high.

When setting rent increase percentage, keep in mind that it should be affordable to your tenants and market rate-based at the same time. Your tenant may not object to rent increases if you set rates that are similar to his or her current rent prices.

For your Rent Increase Notice to be efficient, provide explanations as to why you need to increase rent.

Can I evict a tenant who disputes my Rent Increase Notice?

Yes, you may be able to evict a tenant who disputes your Rent Increase Notice at a reasonable cause. Remember that you may not evict a tenant for Rent Increase Notice disputes alone. It may be possible to evict your tenant if he or she disputes your Rent Increase Notice and fail to pay rent.

Other reasons you can evict your tenant are:

• the tenant causes damage to your property;
• the tenant has a pet without your permission;
• the tenant performs illegal activities on your property, such as drug dealing or using on the property; and
• other violations in accordance with your lease agreement.

Can a landlord increase your rent without a Rent Increase Notice?

Yes, you might be able to increase your rent without issuing a Rent Increase Notice to your tenant. However, you are required by law to notify the tenant within 30 days before the rent increase becomes effective. You may notify your tenant verbally and explain the matter to him or her.

What is the most a landlord can raise your rent payment?

The Rent Increase Notice cannot exceed the rent increase rate set by Rent Control or Rent Stabilization policies. Such rates are different from one city to another.

Above all, landlords are required under the rent ordinance to issue Rent Increase Notices with an adequate amount of time given to tenants before they can raise rent prices. The notice must be sent with proper procedures.

How much notice should be given for a rent increase?

You have 30 days to inform your tenant about your intent to increase rent. You may send your tenant a Rent Increase Letter to provide a written notification.

Send your Letter to Increase Rent via certified mail or submit it in person. You may be able to email it if you have your tenant's email address.

What is a fair rent increase?

The rent increase you propose should be within the Rent Control or Rent Stabilization limit. A new rent increase percentage is posted yearly, depending on your city's ordinance.

Can my landlord just put my rent up?

No, your landlord cannot increase your rent without prior notice. If your landlord did not tell you in person or provide a Rent Increase Notice 30 days before, you may be able to dispute the matter to a court.

You may also use your lease agreement as a reference on how to dispute such an issue. Nevertheless, landlords are required to provide notice of rent increase 30 days or a month before the rent increase comes into effect.

Can a landlord increase rent every year?

Yes, Rent Control or Rent Stabilization ordinances allow a landlord to increase rent annually. However, the landlord must issue a Rent Increase Notice within 30 days prior to the increase taking effect.

How much can you increase rent per year?

The rent increase percentage is typically 5% to 10% each year. However, the Rent Increase Notice you issue should be within tenant-friendly limits by complying with Rent Control or Rent Stabilization ordinances.

Is a landlord allowed to increase my rent every month?

Generally, landlords are not allowed to increase rent every month. Rent Increase Notices are generally for an annual rate.

Can a tenant refuse to pay rent if he or she was not issued a Rent Increase Notice?

Yes, a tenant can refuse to pay the rent if a landlord fails to provide written or verbal notice.

A Rent Increase Notice plays a vital role because it allows tenants to know about the rent increase. Communicate with your tenant regarding the rent inflation to avoid any misunderstanding that could lead to failure to pay rent or eviction.

Why do landlords raise the rent?

Landlords have a right to increase rent if they can provide the Rent Increase Notice 30 days before increasing it. Rent increases are usually due to inflation, increased operating costs, improvements made to the property, and capital improvement expenditures.

Can I be evicted if I refuse to pay rent?

Yes, you can be evicted if you refuse to pay rent. Your landlord might issue you a 30-Day Notice to Vacate or a 5-Day Notice to Vacate. Landlords issue such documents to tenants who violate lease agreements, including not paying or refusing to pay rent.

If your landlord decides and notifies you of the rent increase, you are obliged to pay the rent if the increase is at a reasonable price or cause. Otherwise, you may choose to terminate your lease agreement with your landlord and find another property at a lower cost.

Can I refuse a rent increase?

Yes, you can refuse a rent increase if you feel that it is unfair or unreasonable or it goes against your lease agreement with your landlord. However, your landlord has the right to increase the rent within Rent Control or Rent Stabilization ordinances.

If your landlord did not give you a notice on time, you may dispute the matter in court. Rent increases depend on the rent ordinances of your area.

How can I justify my rent increase?

The Rent Increase Notice you give your tenant must include specific reasons for the increase. Rent increases are generally based on inflation, operating costs, property improvements, capital improvement expenditures, or rent control ordinances.

To justify a rent increase is to provide proper notice to increase rent 30 days ahead of time. Do not leave your tenant with unanswered questions on how the rent increase was determined.

Can I challenge a Rent Increase Notice?

Yes, you can challenge a Rent Increase Notice if your landlord gave improper notice or failed to notify you before increasing your rent. You may find out why the increase was made and present your reasons against it.

You can contact a local legal aid agency to represent you in court if necessary. A lawyer can defend you against overcharging while explaining how the Rent Increase Notice was determined.

Why is rent so high?

Rent increases are generally based on inflation, operating costs, improvements made to the property, and capital improvement expenditures. Rent control ordinances may also cause rental prices to increase.

Contact a local legal aid agency if you feel that your rent increase was not justified or disagree with it. You can fight for what is right by presenting your reasons against the Rent Increase Notice.

How can I increase my rent?

In order to increase your rent, you should give a Rent Increase Notice 30 days before increasing it.

Your Rent Increase Notice should include specific reasons for the rent increase, such as inflation, operating costs, property improvements, and capital improvement expenditures. Do not increase rent unless you can provide a Rent Increase Notice, including valid reasons for the increase.

If the Rent Increase Notice was provided properly, your tenant is obliged to pay the rent even if he or she disagrees with it.

When can my landlord increase rent?

Your landlord can increase rent at any time it is needed. Some reasons a rent increase is needed include inflation, operating costs, improvements made to the property, and capital improvement expenditures.

The rent increase must come into effect after 30 days from the day your landlord issued a Rent Increase Letter.

Will rent go down?

Unfortunately, there is no way to determine if the rent will decrease as this depends on external and internal factors, such as economic conditions and government policies.

Rent will probably go down if the inflation rate decreases. Rent will also go down if rent control ordinances are repealed or if vacancies in a certain area increase.

Related Articles:

• Rent Control
• Rent Stabilization
• Rent Is About To Go Up Again—Here’s Why
• How To Write A Rent Increase Letter