How Can I Write a Rent Increase Notice Without Losing a Client?

Raising the rent should be done with great care which can impact not only your cooperation with a client but also your income as a landlord. However, you are looking for ways of raising a rental fee to fit the market conditions and cover the expenses for you to have the most ideal renters and also minimize the chances of vacancies. What if I draw up a rent increase notice that is precise, lawful, and not harmful? Look at these tips below:

Check a Period of Notice Set by the Government

Before the landlord crafts a notice of rent increase to the tenant, he should look at the period set forth by the government for the tenant agreements. There are different notice types that each country requires before a landlord can increase rent.

In California, for instance, at least 30 days are required to send a notice for rent increase is changed by a maximum of 10%. At the same time, if you want to increase a fee by more than 10%, a 60-day notification is required, In New York a 30-day notice to raise rent is needed for any type of rent uprise.

You should also look at your lease contract to find out whether it allows to increase the rent amount paid while a treaty is in force, or only at the end of the contract. When a tenancy agreement maintains a steady rent amount during some period, then it is not possible to raise the fee until the terms of the stay have been fulfilled with this exception being the acceptance of the change on lease by the client.

If a tenancy treaty contains a clause that would enable you to make such fee adjustments based on things such as inflation, taxes, or utilities, you can adjust the rent accordingly but you need to still notify your clients properly.

What Do You Have to Include In a Notice Rent Increase Letter?

Writing a rent increase letter. A rent increase notice is the type of official statement that gives your clients notification of the new rent fee, the date the rent increase becomes effective, and the cause for the rental rise, for instance, a lease agreement extension. A proper rent increase letter usually consists of such items as:

  • The date of notification and place of application
  • The actual and new rent figures
  • The rent-increasing amount
  • Dated from which the rental fee increases.
  • The reason for raising the cost.
  • An owner’s or his agent’s signature
  • The tenancy agreement or the item granting the rent raise
  • Please, be aware that the lessees shall have the right to dispute the increase of the rental fee or for termination of the tenancy treaty if such arrangements are needed.

What are the main components of a rent increase letter sample? Here is a table that summarizes the main items of a notice of rent increase:

Give a Ground For a Fee Raising

Indeed, the phrase “How much can my landlord raise my rent?” is always in the mind of a tenant. A clearly justifiable reason for the rise in rent is one of the best ways to avoid this loss of clients due to a notice to raise rent. It is possible to tell your tenants that the rise accounts for the escalating property value today, the subsequent rise in technical servicing and repair costs the additional facilities and services, or the prevailing inflation rate.

By providing a rational justification for the rent increase, you will help your clients realize that you are not trying to squeeze the most out of them but are running a smart and profitable apartment business. Your clients can also be encouraged on how to use your ownership properly, till they decide to choose another place to rent.

Date, Names, and Location Addresses

Don’t forget to put the exact date of the notice, landlord’s and tenant’s full names and addresses.

Your Actual and Future Rent Amount  

Indicate the basic amount that you charge from the tenant and the amount you wish to get in the future.

Amount of Increased Rent 

Indicate the % of the increasing amount of rent in CAD.

Date of Effect

Specify the date the new amount will take effect.


Write the basis for why you have to increase the fee.


Yours (owner's) or your agent's signature.

Rent Increase Agreement 

Submit a copy of the rental treaty along with the lease renewal letter with the rent increase.

Dispute or Right Quash 

A clause stating the lessee's right to initiate a dispute over a rent increase or termination of this lease.

Explain the Implications of Non-Payment

The next important aspect in drawing up a rent increase letter is giving the ramifications of the non-payment or delayed payments of the set new amounts of fees. You need to make also your tenants understand that according to the law, they are supposed to pay the rent on time failure to which they can expect additional charges to be charged as late fees, eviction, or even legal actions. The rest that you need to mention in the rental treaty is how you will charge a rent fee, the payment schedule, and also the penalties for any breaches of the agreement.

This dialog will enable the tenants to take the rent increase very seriously so that no chance of debates or misunderstandings might spring up in the future regarding nonpayment in case of raising the cost of these rented premises. It also gives you a landlord algorithm especially when clients fail to pay rent or break the lease agreement.

Wait Till Your Client Answers

After the delivery of the rent increase notice to your tenants, you need to sit back and wait for what they will do. Tenants might agree to the fee increase, try to discuss it by accepting a lower increase %, start court disputing over this increase, or terminate this lease contract. Your notice may allow your tenants to reply to such notice- perhaps within 10 days notification, 15 days notification, or 30 days notification, what is applied by your state’s law and your lease agreement.

The definite time for the response varies by state laws if a state legislature provided any provisions on that matter 10, 15, and 30 days may be referred to. Respect the decision of your tenants. If they agree, thank them, and confirm the agreed-upon rent and start date. If they suggest a smaller hike, settle on it. If they disagree and present proper grounds, evaluate them. If they decide to terminate the lease, recognize it and prepare for their departure.

Wait For a Client’s Opinion and Confirmation

Letters to increase rent can be crucial, as a client’s answer depends on how he/she percepts you as an owner of this apartment or house. An acceptable service, cooperation, maintenance, and amenities increase the likelihood of rent acceptance or negotiation. Conversely, discontent may lead to court proceedings or cancellation of the treaty.

Consider tenant opinions before you finish increasing the rent by searching the feedback and submitting a rent increase letter sample to the tenant. Address concerns promptly showing appreciation. Offering incentives like discounts, referral bonuses, free cleaning, or gift cards can build trust, loyalty, and retention, enhancing your landlord-tenant cooperation.

Provide a Tenant a Way to Contact You

The last step of composing the rent increase notice lies in providing your contacts to a tenant. Give them your private number, email, or post address, and ask your tenant if she or he has any important questions about the increase. You should, furthermore, indicate your desire to listen and work alongside your tenant, some ending with a positive tone, willing to keep their relationship based on rent.

Provide a Draft of the Rent Increase Agreement

In case you and your tenant have set a new rent price and effective date, you need to draw up a rent increase agreement so that you can have an official document that states clearly the price and date you agreed with your clients. This is a treaty that confirms the raising of rent and makes changes to a previous lease contract correspondingly. It must contain such information as: 

  • Contract conclusion date
  • Names and details of the parties.
  • Agreement and document on notification of rent increase
  • Current and future rent fees.
  • Rent increase effective date
  • Signatures of the landlord and tenant
  • Witness or a notary public where it is necessary in terms of legal requirements

You can familiarize yourself with an example of a rent increase agreement:

Sample: Rent Increase Letter

If you wish to see what a rent increase letter looks like, we are glad to give this example of a rent increase notice that follows the structure and components discussed above:

Notice of Rent Increase

To: Jane Doe, Client
From: John Smith, Owner
Topic: Rent Increase Notice (address):

Dear Jane,

I hope this message finds you in a good mood. I wanted to inform you of an upcoming change concerning the monthly fee you pay for apartments. Starting March 1, 2024, I set a new price of $1,100, reflecting a 10% increase of $100 monthly.

This adjustment is necessary to align with the property's market value, which has risen by 15% in the past year according to the National Association of Realtors. Additionally, raised technical support and repair expenses, up by 8% based on contractor invoices, contributed to this change.

As outlined in our original tenancy treaty, please ensure payment on the 1st day of every month. Delayed payments may incur a 5% fee or $55, per the conditions in the tenancy treaty. Failure to pay for more than 15 days may lead to expulsion or a lawsuit, as provided for in the treaty.

Per the US Federal law, a ___-day rent increase notice must be submitted in case of any rent increase. Attached is a copy of the lease agreement with the relevant clause allowing this adjustment.
If you agree, kindly sign and return a copy of this notice by January 31, 2024. Should you disagree, you have the right to initiate a lawsuit or terminate the tenancy treaty by providing written notice by the same date.

Feel free to reach out with any questions or concerns at (phone number) or (e-mail). Your cooperation is valued, and I look forward to continuing our rental relationship.

the Owner
Signature: Please sign and return a copy of this notice to me if you agree to the rent increase. Tenant
Signature: Date:

It’s possible to apply this free rent increase form or modify it as you wish, need, or prefer. However, manage your property wisely with professional Property Management Software. It’s not only about rental increase forms but a comprehensive approach to real estate issues. Don’t waste your time and follow quickly to download the app!


Waiver of Duties and Conclusion

Preparing a rental increase notice is always a big challenge, but the task is possible if it is done in a way that is right and ethical. Drawing up a notice of rent increase, if done so correctly, can bring a warning that not only includes the new property fee and the starting date but also the reason for the rent raise along with the implications of failure to pay or delayed paying, as described in this article, you can easily offer your tenant a chance to reach you. Alternatively, you can produce a sketch of the rent increase agreement confirming the fee raise and amend the initial rent treaty appropriately.

Now, you know how to write a letter to raise rent. Anyway, this article should not be taken as a replacement for professional law advice, and before sending a notice of rent increase to a client don’t hesitate to consult a lawyer or an authority in your locality. The rent increase regulations may be quite different for a state, the city, or the county and everyone needs to comply with them. The sample notice for rent increase presented in the article above is designed for reference purposes only as each case requires a customized notice.

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