Last Updated October 13, 2023
Alternate Names
A Rent Increase Notice is also known as:
- Notice to Increase Rent
- Rent Change Notice
- Letter to Increase Rent
What is a Rent Increase Notice?
Landlords use a Rent Increase Notice when informing tenants about a change in rent charges. With this document, landlords fulfill their obligations to provide appropriate notice periods and fair rent adjustments.
Likewise, tenants learn how much their rent will increase and when the changes take effect; this gives tenants time to prepare for and comply with the increase.
How do I write a Rent Increase Notice?
To write a formal Rent Increase Notice, simply fill out LawDepot's questionnaire. The information you'll need to have on hand includes:
- The type of lease (e.g. month-to-month, year-to-year, etc.)
- The location of the property
- Details about the rent (current rent vs. new rent and effective dates)
- Details about the lease (start date and signing date)
- The full names of both landlord and tenant
Optionally, you can include information regarding the collection of rent; for example, you could require tenants to make payments in person at a certain address. You can also specify a preferred method of payment such as cash, money order, or online banking.
How should I calculate my rent increase?
In some jurisdictions, landlords must abide by rent stabilization regulations. Be sure to research the guidelines for increasing rent in your area before you send out a Notice of Rent Increase. After following your local laws, it's important to ensure any rent increases also comply with the terms of your lease.
Aside from being compliant with landlord obligations, several other factors may influence the rate of a rent increase:
- The rental market in your area
- The frequency of rent increases
- The Consumer Price Index (and the calculated rate of inflation)
- The attitude or behavior of your tenant
To be fair, landlords often increase rent charges by 1–2% to match the rate of inflation calculated by the Consumer Price Index. In addition, landlords who frequently raise the rent (e.g. every year) may only seek a slight increase to avoid overwhelming or ousting reliable tenants.
However, a larger increase (between 3–5%) in rent may be suitable for landlords looking to match the rental market in the area. It may also help offset costs caused by an unruly or troublesome tenant.
Keep in mind, landlords cannot raise the rent to retaliate against a tenant for exercising their legal rights (e.g. asking for the landlord to pay for property repairs).
How much notice should I provide to increase the rent?
In most states, landlords must provide a written Notice of Rent Increase at least 30 days in advance. However, the notice period may vary anywhere from 15 to 45 days depending on the type of lease and the laws of your jurisdiction.
Also, some states require certain delivery methods of the notice to ensure the tenant is properly alerted. In Alabama, for instance, a sheriff serves the Rent Change Notice on behalf of the landlord. As such, it's important to research the notice requirements of your area.
It's important to note that a Rent Change Notice may be invalid if local laws are not followed.
