At some point in your career as a landlord, you will likely have to raise your tenant’s rent. Whether it’s to cover rising property taxes, to help upgrade your building with newer appliances, or to replace key parts of your residence like the roof or windows, increasing your rent can help cover the costs associated with being a property manager.
Generally, when you want to increase a tenant’s rent, you give them written notice as well as a new lease agreement to sign which reflects the new rent price. Here are a few tips to keep in mind when writing a rent increase letter to your tenants.
Keep it short
One of the best things you can do when writing a rent increase letter is to keep it concise. This ensures that your message is understood clearly and there is no confusion.
Remember that you’re well within your rights to increase their rent. There’s no need to go into a long list of reasons for your need to increase their rent. Simply state the facts.
Follow your state’s applicable laws
When writing your rent increase letter, it is imperative that you follow all of your state and city’s local ordinances about rent increases. Depending on local laws, you may only be able to raise the rent every so often.
Many cities also require you to give a certain amount of notice before the increase is able to go into effect. Other neighborhoods with rent controlled housing may cap the maximum amount you can charge for an apartment or home. When in doubt, double check with your state’s rent increase laws before taking any action.
Include your contact information
Even though you already have a relationship with your tenants, you should always include your contact information on any written communications you have with them.
Nowadays, it’s a good practice to include your company address, email address, and business phone number, as well as your cell phone number on important communications like a rent increase letter. This ensures that if your tenants should have any immediate questions or concerns they have a variety of ways to reach out to you.
Keep it friendly
Keep in mind that raising your tenants’ rent can come as a shock or burden to them, and be sure to write to them in a friendly tone as you compose your rent increase letter.
Personalize the greeting so that your tenant knows they aren’t receiving a blanket form letter. You may also want to thank them for being a tenant and for understanding the need to increase their rent.
Simplify the process for your tenants
Just as you may have handled your tenant’s rental application using the internet, it’s important to make it easy and convenient for your tenants to agree to and pay you for the increase in their rent.
A simple yes-or-no question about agreeing to the rent increase can be a simple and effective way to ensure that your tenants understand what they are agreeing to when they sign the new lease agreement. Additionally, since rent increases can sometimes be slight, it may be worth offering them the opportunity to pay you the difference in rent online for their first month.
Although it can be uncomfortable to ask for higher rent from your tenants, it’s vital that you remember that, as a property manager, you are ultimately a business. Even if your tenants have just paid rent, if they truly need to find some extra money to cover the difference, they have plenty of options, including taking advantage of payday loans online.
The easiest way to increase your tenants’ rent is to write an increase letter that clearly spells out the particulars of your new lease agreement. Writing a letter that is friendly, concise, and designed not to inconvenience your tenants will go a long way in keeping the process smooth.