If it is lease season and time for you to start thinking about increasing rent, this article will help you write the letter. Your bottom line is at stake, and you want the rental unit at a fair market price, but you also want to retain trustworthy and dependable renters. If you do decide to raise the rent, you need a friendly rent increase letter to your residents. You want to have a warm tone with reasons for the increase. You want to do your best to not cause residents to consider moving.
Rent Control In The United States
This refers to laws or ordinances that set price controls on the rent of residential housing to function as a price ceiling. Each state has different laws you must abide by when it comes to increasing rent. So before raising rent, check with the state laws of your property. Generally, landlords can only raise the rent when the lease expires. Landlords must give written notice of rent increase 30 days in advance.
Communication Is Key
Wonder what to include in a rent increase letter? A friendly rent increase letter can make all the difference when addressing this topic with your tenants. Keep the letter concise. Consider the explanation of why you are increasing the rent such as new city fees or improvements. Adding this shows where you are coming from and will help your tenants understand why the increase is necessary. This will make your letter seem more like an agreement than a demand.
When writing a rent increase letter, be sure to include:
- Tenant’s name
- Property address
- Landlord’s name and contact info
- Date the letter was written
- Date the rent increase will take effect
- Rent increase amount
- Current rental amount
- Date the new rent will be due
- A reference to the lease agreement
- Amount of time the tenant has to give notice if they are not renewing
When presenting the letter to the tenants, it is wise to be sure everyone received their letter. Deliver by hand and have the tenant sign that they have received it, or mail it certified mail with a receipt. You can then follow up by email if you choose to say something about your property and about meeting them or knowing they received your certified mail. This gives the letter a personal touch.
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