Rent Increase Notice Letter Template

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.

What to Include in a Rent Increase Letter?

A simple notice of rent increase letter identifies the following essential elements:

How to Increase Rent

When considering a rental rate increase, you’ll want to balance how profitable your rent investments are with the affordability for prospective tenants.

Step 1 – Know your State Laws

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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Step 2 – Rental Comparison Analysis

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:

Ensuring a Fair Rent Increase

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.

Step 3 – Review Lease Agreement

Review the lease terms to determine whether it is expiring or has transitioned to a month-to-month rental agreement.

Step 4 – Determine a Valid Reason for Increase

There are many reasons why you may need to send a rent increase notice, including:

Step 5 – Check Your State’s Notice Period

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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Step 6 – Send a Rent Increase Notice

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:

TIP

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.

Respect Tenant Rights

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:

1. Provide Adequate Notice

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.

2. Communicate Clearly and Respectfully

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.

3. Offer Lease Renewal Options

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.

4. Explain the Difference Between Renewal and Extension

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.

5. Include a Rent Increase Lease Addendum

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.

6. Allow Time for Negotiation

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.

7. Document Everything

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.

Avoiding Retaliation

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 .

Factors To Consider Before Raising the Rent

Keep the current economy and housing market in mind before raising the rent. If you increase the rent, you may risk losing current tenants.

IMPORTANT

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.

How Much Can a Landlord Raise the Rent?

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.

When Can’t a Landlord Increase Rent?

Landlords cannot increase rent if:

Alternative Form

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.

How to Write a Notice of Rent Increase

Before filling in the details of your notice of rent increase, ensure the top of the form contains the state you are contracting in.

Step 1 – Date the Document

1. Date of Notice. Provide the date of this notice of rent increase.

date of notice

Step 2 – Enter Tenant Contact Information

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.

tenant details

Step 3 – Fill in Rent Details

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.

rent details

Step 4 – Ask for Tenant Acknowledgement

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.

tenant acknowledgement

Step 5 – Provide Landlord’s Contact Information

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.

landlord details

Notice of Rent Increase Sample

Download a sample below in PDF or MS Word: