Use our Notice of Rent Increase form to notify tenants of their new rent amount.
Updated June 7, 2024
Written by Yassin Qanbar | Reviewed by Susan Chai, Esq.
A Notice of Rent Increase is a written letter from a landlord or property manager to a tenant that officially communicates an upcoming change in the amount of rent due. This notice is generally issued when a lease is about to expire or to modify a month-to-month rental agreement.
Upon receiving the notice, the tenant has the choice to either accept or reject the new rental terms. To ensure legality, the notice should be sent via certified USPS mail, which provides the landlord with a receipt confirming the date the tenant received the notice.
A simple notice of rent increase letter identifies the following essential elements:
When considering a rental rate increase, you’ll want to balance how profitable your rent investments are with the affordability for prospective tenants.
As a landlord, it’s important for tenants to be aware of the state’s laws before signing a rental agreement or paying any fees that may be deemed illegal. This ensures transparency and compliance, fostering a smooth and lawful tenancy.
Certain states operate under the Dillon Rule, a principle originating from Judge John Forrest Dillon’s ruling in the 1868 case of Clinton v. Cedar Rapids and the Missouri River Railroad. This rule restricts local governments to only enact laws explicitly granted by the state government. If municipalities seek to extend their powers beyond those specifically delegated, they must request permission from the state.
The following table showcases rent control laws nationwide:
Type of Rent Control Law | States Included |
---|---|
The Dillon Rule States No Rent Control/ No Preemption | West Virginia, Alaska, Nevada, Pennsylvania, Vermont, Virginia, Rhode Island |
States That Preempt Rent Controland Mandatory Inclusionary Zoning | Arizona, Indiana, Kansas, Tennessee, Texas, Wisconsin |
States With No Rent Control/ No Preemption | Hawaii, Nebraska, Montana, Wyoming, Delaware |
States and Federal Districts with Statewide and Districtwide Rent Control | District of Columbia, Oregon |
States With Statewide Rent Controland Local Ordinances in Effect | California |
States With No Statewide Rent Control; County and City Laws in Effect. | New York, Maine, New Jersey, Maryland |
States That Preempt Rent Control | Maine, Maryland, New Jersey, New York, Alabama, Arkansas, Colorado, Connecticut, Florida, Georgia, Idaho, Illinois, Iowa, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Mississippi, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Utah, Washington |
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A rental comparison analysis allows you to compare your property with other nearby rentals of the same type, with similar square footage and number of bedrooms and bathrooms.
Researching what other landlords in the area are charging helps determine a fair market price for your rental.
Consider using a rental property calculator , which can help determine operating expenses, such as taxes, insurance, maintenance, and utilities, compared against your desired profit and property value to determine a fair rent amount.
Some amenities that could influence higher rental rates include:
Realty websites like Rentometer and Zillow can help you compare rental rates in your area to ensure your increase is justified. You can also look to Facebook Marketplace and see what other landlords are charging for rent in your area.
Finally, you can consult with a local real estate agent or property management company for more comparison information.
Review the lease terms to determine whether it is expiring or has transitioned to a month-to-month rental agreement.
There are many reasons why you may need to send a rent increase notice, including:
Check the laws in your particular state regarding rent increases. In most cases, you may not increase rent on long-term lease agreements until the end of the lease, and the law requires you to give 30- to 60-day written notice ahead of the lease expiration date.
Month-to-month rental agreements still require written notice, but a landlord has more flexibility regarding when the rental increase will go into effect.
If the lease has expired or no lease exists and the tenant has not signed a new lease, the landlord must follow state and local laws and give the appropriate advance notice before sending a rent increase notice.
Refer to the table below to find the required notice period for the state where the property is located:
State | Notice Period | Statute |
---|---|---|
Alabama | – | N/A |
Alaska | 30 days | Alaska Stat. § 34.03.290 |
Arizona | – | N/A |
Arkansas | – | N/A |
California | 30 days if the rent increase is 10% or less and 90 days if more than 10%. | CIV § 827 |
Colorado | – | N/A |
Connecticut | – | N/A |
Delaware | 60 days | § 5107 |
Florida | – | N/A |
Georgia | – | N/A |
Hawaii | 45 days | § 521-21 |
Idaho | 15 days | § 55-307 |
Illinois | – | N/A |
Indiana | 30 days | § 32-31-5-4 |
Iowa | 30 days | § 562A.13 |
Kansas | As mentioned in the lease | § 58-2545 |
Kentucky | – | N/A |
Louisiana | – | N/A |
Maine | 45 days for less than 10% increase; 75 days for 10% increase or more | § 6015 |
Maryland | 90 days for year lease; 60 days for month-to-month | § 8-209 |
Massachusetts | 30 days | Attorney General’s Guide to Landlord and Tenant Rights |
Michigan | – | N/A |
Minnesota | Equal to Frequency of Rental Payments | § 504B.135 |
Mississippi | – | N/A |
Missouri | – | N/A |
Montana | 15 days | § 70-26-109 |
Nebraska | As mentioned in the lease | § 76-1414 |
Nevada | 45 days | NRS 118A.300 |
New Hampshire | 30 days | RSA 540:2 |
New Jersey | 30 days | NJ Rent Increase Bulletin |
New Mexico | 30 days | § 47-8-15 |
New York | – | N/A |
North Carolina | – | N/A |
North Dakota | 30 days | § 47-16-07 |
Ohio | – | – |
Oklahoma | – | – |
Oregon | 30 days | § 90.220 |
Pennsylvania | – | N/A |
Rhode Island | 30 days | § 34-18-16.1 |
South Carolina | – | N/A |
South Dakota | 30 days | § 43-32-13 |
Tennessee | – | N/A |
Texas | – | N/A |
Utah | – | N/A |
Vermont | 60 days | § 4455 |
Virginia | – | N/A |
Washington | 60 days | RCW 59.18.140 |
Washington D.C. | 30 days | Rent Control Fact Sheet |
West Virginia | – | N/A |
Wisconsin | 28 days | § 704.19 |
Wyoming | – | N/A |
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The lease agreement may describe how landlords should send a rent increase notice.
Our free lease agreement template, for example, says that all notices (including a rent increase letter) must be in writing and should be either:
Sending a rent increase notice by mail (especially if trackable) creates a better record than delivering it via email or text.
If the landlord has emailed the tenant, another option is to send the letter and a hard copy electronically.
A text message is generally not a good way to create a reliable paper trail for a rent increase notice.
When increasing your tenant’s rent, it’s crucial to respect their rights and ensure the process is fair and transparent. Here are the steps to follow:
Most jurisdictions require landlords to provide tenants with a notice period before a rent increase takes effect. The required notice period is usually outlined in the lease agreement or local laws. Ensure you give your tenant ample time to prepare for the change.
Draft a clear and respectful rent increase letter. Clearly state the new rent amount, the effective date, and the reason for the increase. It’s important to maintain a professional and courteous tone to preserve a positive landlord-tenant relationship.
When notifying your tenant about a rent increase, offer them a Lease Renewal Agreement with the new terms. This can provide them with a sense of stability and security.
Ensure your tenant understands the difference between renewing their lease and extending it. A Lease Renewal vs. Extension: What’s the Difference? guide can be helpful in clarifying these terms.
To formalize the rent increase, include a Rent Increase Lease Addendum. This document outlines the new rent amount and any other changes to the lease terms.
Be open to discussing the rent increase with your tenant. They may have concerns or questions, and addressing them promptly can help maintain a good relationship and reduce the risk of vacancy.
Keep thorough records of all communications and documents related to the rent increase. This can be useful in case of any disputes or misunderstandings in the future.
By following these steps and respecting your tenant’s rights, you can implement a rent increase in a fair and transparent manner, helping to maintain a positive and respectful landlord-tenant relationship.
Many states assume retaliation if the landlord sends a rent increase notice or an eviction notice 60 to 180 days after a tenant files an official complaint against the landlord .
Keep the current economy and housing market in mind before raising the rent. If you increase the rent, you may risk losing current tenants.
Landlords can only increase the rent during the term of a lease if the original lease contract allows for the increase and the landlord follows the proper notice period.
No federal laws limit the amount a landlord can increase a tenant’s rent if you give sufficient notice. However, some states have passed legislation limiting the percentage a landlord can increase rent in a given period. For example:
A rent increase percentage does not limit Massachusetts landlords.However, they are required to provide written notice at least 30 days before the end of a lease period, and the tenant must sign a completely new lease agreeing to the rent increase.
Landlords cannot increase rent if:
If you are a tenant who has received a rent increase notice and wants to vacate the property instead of paying a higher rent amount, you can send your landlord or property manager a Notice to Vacate form.
Before filling in the details of your notice of rent increase, ensure the top of the form contains the state you are contracting in.
1. Date of Notice. Provide the date of this notice of rent increase.
2. Tenant Name. Write the full name of all tenants (the persons leasing or renting the property).
3. Tenant Address. Provide the street address of the property the tenant is leasing or renting.
4. Name of Original Lease Agreement. Enter the name or title of the original lease or rental agreement between the landlord and tenant.
5. Date of Original Lease Agreement. Write the date of the original lease or rental agreement.
6. Current Rent. Provide the current monthly rent amount.
7. New Rent Amount. Write the new increased monthly rent.
8. Date of Rent Increase. Enter the date the landlord will increase the rent.
9. New Rent Due Date. Fill in the day the new rent is due each month.
10. Tenant Signs and Returns Letter. You can choose whether or not to include a tenant acknowledgment where the tenant signs a statement acknowledging and agreeing to the rent increase.
11. Landlord Name. Enter the landlord’s full name.
12. Landlord Address. Write the landlord’s mailing address.
13. Landlord Phone Number. Fill in the landlord’s phone number.
14. Landlord Email. Provide the landlord’s email address.
Download a sample below in PDF or MS Word: