How to Write a Friendly Rent Increase Letter (Free Samples)

One of the most dreaded letters to compose is the rent increase letter. A tenant and landlord relationship is a delicate one and when sending correspondence of this type, it is important to make sure it is correctly done.

Effectively Communicate

In order to have a happy tenant, the landlord and tenant must communicate well. Unfortunately, there comes a time when all landlords will need to increase the rent. 

For some it is keeping up with the market value or for others it is to offset the price of costly repairs. This letter must be worded very carefully to ensure that the transition if smooth.

While writing such a letter, it is important to remember that this is a hard working person on the other end. 

Most people are already maxed out on bills and stress levels and this type of letter might not be received well. 

Everyone has demands with their jobs and home lives. A letter written incorrectly could lead to vacancy loss, as the landlord will need to find a new tenant. Make sure to be courteous, as a rental increase letter is never welcomed.

State the Reasons

The rent should be raised at the end of the lease period. This should be spelled out in the verbiage of the lease. 

When beginning a rent increase letter, remind the tenant of the evaluation period and that they are within this time frame. 

 Next, it is important to explain why the need for a rental increases. If it is inflation or property tax increase or inflated repairs, be honest with the tenant. 

Honestly goes a long way in a letter of this nature. If the tenant feels that the landlord is backed into a corner, and not just being greedy, they are less likely to want to move.

Flattery Goes a Long Way

If the tenant has been a model one, make sure to give them compliments. Those who take care of the property are hard to come by, so make them feel important and let them know how much they are appreciated. It’s hard for someone to be mad when they are being flattered.

Be specific in how much the increase will be and when it will take place. Never be vague in a letter like this, but always spell everything out in black and white. 

It is also wise to give a couple months’ notice to the tenant. This may also give the landlord a bit of time to find a new tenant, should they choose to leave. 

Finally, let the tenant know that the increase was not a stress-free conclusion and that your desire is for them to continue as renters. 

See sample friendly rent increase letters below:

Sample 1 – friendly Rent Increase Letter

April 29, 2021

Stephen and Jennifer Smith
12265 Breezy Hill Lane
Columbus, Ohio 43123

Dear Stephen and Jennifer;

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 June 1st, 2021. 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 Breeze Hill Land. If you have any questions, please feel free to call me at 614-209-5934.

Best Regards,

Henry Boggs
Owner of Tri Start Properties

Sample 2 – friendly Rent Increase Letter

Your Name
Your Address
City, State, Zip Code

DATE

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

RE: Notice of rent increase

Dear [Name of Tenant]:

This letter is to formally inform you that starting on [DATE], the monthly rent for the house you currently occupy at the above address will be raised $50 from [AMOUNT] to [ NEW AMOUNT]. The payment is due on the third of each month.

I hope you remain in the house. You have been an exemplary tenant and keep the house in good condition. I can be reached at [Phone Number] or by [Email Address] if you have any questions.

Sincerely,

Your Signature
Your Printed Name

Space for Signature
Printed Name of Tenant

Sample 3 – friendly Rent Increase Letter

August 3, 2021

Jeff and Stacy Grossman
1700 Lancaster Avenue, Apartment B-1
Grove City, Ohio 43123

RE: Notice of rent increase

After reviewing our rental records, it came to our attention that your lease is going to expire on September 31, 2021. 

This is on our rental property located at 1700 Lancaster Ave. Presently, the rental amount for your apartment is $1,400.

Effective October 1, 2021, we find it necessary to increase the rent to $1,425 per month. 

We have decided to do some upgrades to the property and this extra money will help finance those payments.

It has come to our attention that there is a great deal of traffic in and out of the home at all hours. 

While you have always been great tenants and paid the rent on time, I would caution you against unlawful activities on my properties.

We have a zero tolerance for partying, drugs and any other nuisance in our rentals. Because we have higher end rentals, we expect our tenants to be upstanding citizens and not to disturb other neighbors.

As you know, your lease states that you must notify us in writing if you intend to vacate the premises.

We need to know within 30 days, or by August 31, 2021. We need to hear from you by December 31st or we will impose the month to month rental rate, as per your lease agreement.

Sincerely,

David Cambrian
Honey Tree Apartments

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