Sometimes it is necessary as a landlord to raise rent for tenants who already reside in the building, to keep up with maintenance costs. In this case, proper notification to the tenants is absolutely necessary to avoid legal woes. It is acceptable to let the tenants know at least one month in advance that rent will go up, according to Neighbourhood Legal Services. Give your tenants the proper notice by writing a rent increase letter.
Write the letter in a word processing programme rather than handwriting it. This looks more professional and will allow you customise each letter more easily.
Type the company's name and address at the top of the page. All names and addresses should be formatted with the name on one line, followed by the address on two lines. If you have a company letterhead, this step is not necessary.
Enter the date below the company information or letterhead, separated by one paragraph space. The date is important because it indicates that you got the rent letter to the tenants in the appropriate amount of time.
Type the resident's name and address beneath the date, separated by one paragraph space. Press "Enter" twice to make another paragraph space.
Begin the letter with "Dear [resident's name]." It is appropriate to enter a prefix such as "Mr." or "Ms." when entering the resident's name. For example, it could read, "Dear Mr. John Brown." Enter a line space between the greeting and the body of the letter.
Indicate in the beginning of the letter body why rent is being increased, followed by the actual statement that rent will be increased. An increase in rent is often the result of increased cost to the landlord. For example, the letter may begin, "Due to the increased cost of maintenance and utilities, it is necessary to raise your rent." Be sincere; use terms such as "we reluctantly inform you."
State the currently monthly rent, followed by the new amount per month and the date in which the rent increase becomes effective. You can also inform the tenants as to how much exactly the rent is being increased.
End you letter with a statement that appreciates the tenant's cooperation, and let them know that you hope you are also meeting their needs. Follow this with a statement asking the tenant to contact you if they have any questions or concerns regarding the rent.
Type your closing beneath the body of the letter, separated by one line space. You can close with "Regards," "Sincerely" or even "Thank you," followed by the name of the company or the landlord's name.
Keep in mind that you may not raise rent while the lease is in effect unless it is indicated in the lease that rent may change.
Tips and warnings
- Keep in mind that you may not raise rent while the lease is in effect unless it is indicated in the lease that rent may change.