How to Write a Friendly Rent Increase Letter

 Use these sample friendly rent increase letters as templates for your formal rent increase letter.

There are many reasons landlords need to raise the rent on their property. They may need to keep up with the market, especially if the neighborhood has improved. All of the rents in the improved area will be higher.

Another reason for a rent increase is home improvement. If the building has been upgraded with a new kitchen, deck or other improvement, the landlord will be able to get a higher rent. Finally, if the landlord’s property taxes or insurance premiums are raised, he or she may need to raise the rent just to be able to keep the property.
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​The landlord must research the ordinances in the city where the property is to make sure he or she is allowed to raise the rent. These laws are governed by the jurisdiction in which the letter is written. The landlord must comply with the local statutes before they can legally increase rent.

There will be a legal number of days before the higher rent goes into effect. It may be two weeks, 30 or 60 days. The letter must arrive in the tenant’s hand before this time frame.


This guide is intended for landlords who are within their legal boundaries. Most landlords can raise the rent when the lease expires. They may also be able to raise it if the original lease has a clause that allows the rent to be raised. ​
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The letter will be a record of the notification of the rent increase. It’s a simple way to avoid misunderstandings or delays about the amount of rent the tenant owes. It’s also an opportunity to restate the date the rent is due, the policies for late payment and how the rent is paid.

The letter should contain:

• The purpose of the letter
• The exact amount of the raise and the new amount of rent
• The date the new rent will begin
• The reason the landlord needs to raise the rent
• The official name of the tenant should be used, not a nickname
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It is recommended to give contact information, so the tenant can talk to the landlord either over the phone or in person. The tenant may want to ask detailed questions about the reason for the rent raise and may even get angry with the landlord. The landlord should explain the reasons as clearly as possible and let the tenant vent their frustrations. If the landlord wants to keep a tenant but has no choice but to raise the rent, he or she may want to consider raising it in increments to make it easier on a good tenant.

Below is a sample rent increase letter from a landlord. Since it will be an official record, it should be in formal business-letter style and either given by hand or sent by certified mail. If it is sent by certified mail, the landlord will have proof that the tenant was notified within the prescribed period of time.

​Since this letter is bad news to the tenant, the tone should be courteous and polite. If the tenant is a good tenant, and the landlord would like them to stay in the house, they should say so. There’s no harm in the landlord telling the tenant that he or she hopes they will stay. A raise in rent could result in the tenant leaving the property and the landlord needing to fill the vacancy.
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​Sample 1 - Friendly Rent Increase Letter
Name of Landlord
Address of Landlord
City, State, Zip Code

DATE

Name of Tenant
Address of Tenant
City, State, Zip Code

RE: Notice of rent increase

Dear Name of Tenant(s):

I want to take a moment and let you know how much I value both of you as tenants. It is not easy to find tenants that pay their rent on time and also take care of the property so well. Unfortunately, I have experienced some expenses with my rental properties that are prompting the need for a rental increase.

Your lease will officially be over on [DATE]. I would like for you to continue as my tenants, but an increase of $75 will be applied to the new lease term. The rent is currently $950 and under the terms of the new lease agreement, will need increase to $1,025. Should you wish to go month to month or to sign a new agreement, this new amount would be required.

Again, I thank you for taking care of my property and being the model tenants that you are. I hope that you will continue to remain a tenant at [ADDRESS]. If you have any questions, please feel free to call me at [555-209-5934].

Sincerely,

Signature of Landlord
Printed Name of Landlord

​Sample 2 - Friendly Rent Increase Letter
​[Name of Landlord]
[Address of Landlord]
[City, State, Zip Code]

[DATE]

[Name of Tenant]
[Address of Tenant]
[City, State, Zip Code]

RE: Notice of rent increase

Dear [Name of Tenant]:

Please be advised that your current lease will expire on [DATE].  Effective [DATE] your monthly rent will increase by [AMOUNT]. Your monthly rent will be [AMOUNT] per month. Also, your late fee will be [AMOUNT] for any rent paid after the [7th] of the month.  An Amendment will be attached to your lease of [DATE].

If you have any questions, or comments please do not hesitate to contact me.  Thank you for your cooperation and past support.

Sincerely,
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[Signature of Landlord]
[Printed Name of Landlord]

Signature of Tenant _______________________________            Date_______________