Rent Increase Agreement Template

In most cases, the cost of managing a rental property does not determine the amount of rent to be charged for it – the local rental market does. You won`t get much interest from potential tenants if you charge much higher rental prices than similar properties nearby. By keeping your rental prices competitive in your area, you are much more likely to have your property seen and rented. The best way to determine how much you should increase the rent is to look at similar properties in your area to see how much they cost. There are two simple ways to do this: This letter, sent on February 1, 2018, marks an official notice of our intention to increase the monthly rent from $500 per month to $550 effective April 1, 2018. If you do not agree to the rent increase in accordance with the terms of this notice, your current lease will be terminated on April 1, 2018. As for how much you can increase your rent, you`ll need to refer to your state and local laws. These laws also tell you how many days you need to give your tenant a period of time before increasing the rent. In addition, landlords are usually prevented from raising the rent as long as an existing agreement exists.

In many states, retaliation is presumed when the landlord increases the rent or sends an eviction notice 60 to 180 days after a tenant files a formal complaint. In California, for example, the Department of Consumer Affairs reports retaliatory rent increases. It is also illegal to increase the rent because a tenant has reported a violation of the housing code. Knowing when to increase the rent and how often it depends on the market of the neighborhood where the property is located. You can link to tools like Apartment List rental reports to see how your current price compares. As a landlord, it`s understandable that you need to occasionally increase your tenants` rent. While you don`t need to explain the reasons for the rent increase, by following some of the guidelines included in this article, you may be able to reduce the anxiety caused by the increase while complying with the law. And we understand, there are many real reasons to increase the rent, such as an increase: landlords avoid any confusion by writing a rent increase. If you don`t send an appropriate rent increase letter in advance, the following avoidable consequences may occur: Remember that landlords cannot increase rent to take revenge on a tenant for exercising their legal rights (e.g.B.

ask the landlord to pay for repairs to the property). In the notice of rent increase, you must inform the tenant of the amount of the revised tenancy and the date it takes effect (usually the day after the end of the fixed lease or monthly contract). These notices have two purposes: they inform the tenant of the rent increase and officially document the change. In some jurisdictions, landlords must comply with rent stabilization regulations. Be sure to research the guidelines for increasing rent in your area before sending a notice of rent increase. After following your local laws, it`s important to make sure that any rent increase also meets the terms of your lease. However, a rent increase is not always at your sole discretion. In some cities, rent control and rent stabilization laws apply. The lease may describe how letters are to be sent. For example, the example of a free lease for residential real estate states that notices must be written and must be: 3. Conduct market research to make sure that rising rents don`t make your property less competitive.

Landlords don`t have the option to increase a tenant`s rent when they feel like it (there are guidelines a landlord must follow to increase rent, which protects tenants from unreasonable increases), but if you decide that a rent increase is acceptable, you need to follow certain landlord-tenant policies to manage the increase. There are several situations where the rent cannot be increased: If your tenant has signed a fixed-term lease, you will only be able to legally increase their rent at the end of the term. The only exception is if you have added a provision in your initial lease that allows you to increase the rent for the duration. However, this provision is not recommended because it denies the purpose of a fixed-term lease and is rarely admissible in court. Landlords can introduce a rent increase when a new term lease is created or after the end of the original lease and the tenant agrees to a lease extension under new terms. Are you planning to increase the rent by more than 10%? You must notify your tenants 60 days before the lease expires. Ultimately, if you decide to increase a tenant`s rent, make sure you meet federal, state, and local requirements, give notice, and at the same time offer a fair market price for your area — this can also help you retain reliable tenants. It`s understandable that a tenant isn`t very enthusiastic about receiving a notice of rent increase – so try to keep your termination polite and professional. Personal finances can be a tricky issue and good communication of the raise can give your tenant a reason to stay. Tenants appreciate an honest, professional and friendly landlord, so don`t skip the courtesies.

Although you want your termination to be short, you should write a brief explanation of why you are increasing the rent. The reasons could be anything from new homeowners` association fees to an increase in taxes. This level of transparency can make the increase more understandable for your tenant. If you have tenants who rent as part of a monthly lease, the rules are a little less strict. You can increase the rent by giving 30 days` notice. There are a few additional steps you can take to better deliver news of a rent increase. Implementing some of these tips increases the likelihood that the notification will be made without much hindsight from your tenants and with little effort on your part. Landlords have specific responsibilities under federal, state and local landlord-tenant law. If an owner-tenant dispute arises and the landlord increases the rent in bad faith (to force the tenant to move), it is likely to violate state law. There are several situations in which rent cannot be increased: if a landlord wants to increase a tenant`s rent, the landlord must send written notice to the tenant.

Your notice must be in writing (letter or email), as verbal agreements are generally not admissible in court (in case of dispute). Ideally, you want to send the notification by registered mail, which will give you a record that the tenant has received it. As long as there are no municipal laws that prevent the landlord from increasing the rent, the landlord`s only obligation is to terminate within the time limit prescribed by his state. The following states have termination obligations to increase a tenant`s rent: The notice of rent increase is a letter provided by the landlord informing the tenant that the rent will be increased. The letter can only be used for monthly leases, unless a standard lease (fixed lease) expires, and then this letter can be issued after it expires. After issuing the notice of termination, the tenant has the right to refuse the increase and decide to leave the premises. For example, in a monthly or weekly lease in California, landlords must give at least 30 days if the rent increase is 10% or less, and 60 days in advance if the rent increase is 10% or more. You can learn more about rent increases from the California Department of Consumer Affairs. Optionally, you can provide information on the collection of rent; For example, you could ask tenants to make payments in person at a specific address. You can also specify a preferred payment method such as cash, money order, or online banking.

A notice of rent increase is a written document that informs a tenant of the periodic rent increase. State law requires that such notification be made a certain number of days before the first applicable payment deadline. In some states, rent control laws also affect the security deposit in the event of a rent increase. .