Notice of Rent Increase

A Notice of Rent Increase is a notice that landlords use to communicate any rent changes (usually higher) to their tenants.

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Written by:

Payge Torres Anderson

If a landlord wishes to increase the rent on a residential property, issuing a Notice of Rent Increase would be in order. With the notice, the landlord can officially notify their tenant of any change in the cost of rent. A Notice of Rent Increase also serves as a legal record in the event that the tenant fails to comply with the new rent.

What Is a Notice of Rent Increase?

When a landlord leases their residential property to a tenant, the cost of the rent is agreed upon by both parties and usually recorded in a lease agreement. If the lease agreement allows the landlord freedom in changing the amount of rent due after a period of time, the landlord can issue a Notice of Rent Increase to formally notify the tenant of higher rent going forward (starting from a date specified in the notice).

This is a notice of a future rent increase that effectively enables the tenant to prepare for the higher rent. However, if the original lease agreement explicitly prohibits the landlord from increasing rent, the tenant is under no obligation to pay the higher rate.

A landlord can always use a Notice of Rent Increase to inform a tenant that any lease renewal would come with a higher rent, in which case the notice is usually issued 60 days before a lease agreement is to expire.

Other Names for Notice of Rent Increase

Depending on your state, a Notice of Rent Increase may also be known as:

Notice to Increase Rent
Rent Change Notice
Letter to Increase Rent
Rent Increase Notice

Who Needs a Notice of Rent Increase?

Any landlord who would like to collect a higher rent should use a Notice of Rent Increase to inform tenants of the proposed change. With the notice, a landlord can prove that the rent increase has been communicated to the tenant. A landlord can also use the notice as a formal document in court should a tenant fail to comply with a legal rent increase.

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How to Create a Notice of Rent Increase With 360 Legal Forms

Creating your Notice of Rent Increase gets a lot easier if you know your state laws. Let 360 Legal Forms help with our extensive library of attorney-vetted legal forms. The process is fast and easy. All you have to do is fill out our easy-to-understand questionnaire. Once complete, simply download your form as a PDF or Word document from your secure online account.

What Information Will I Need to Create My Notice of Rent Increase

To create your document, please provide:

Landlord Information: The legal name, address, and contact number of the landlord
Tenant Information: The legal name, address, and contact number of the tenant
Property Location: The address of the rental property
Lease Information: Details about the start and end date of the lease agreement
Rent Information: Details about the current rent and the proposed rent increase
Effective Date: The date when the new rent is to become effective

Notice of Rent Increase Terms

The Landlord: The person or company that owns the rental property
The Tenant: The person or entity renting the property
New Rent: The increased amount of rent due
Premises: The confines of the rental property

Notice of Rent Increase Signing Requirements

The landlord should sign the Notice of Rent Increase, as should the individual delivering the notice to the tenant, if different from the landlord. You do not have to get the document notarized.

What to Do With Your Notice of Rent Increase?

After printing out a copy, signing it, and arranging to have it delivered to the tenant, the landlord should keep a copy of the notice in their records, preferably together with the original lease agreement.

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Frequently Asked Questions

What are the valid reasons most commonly cited by landlords for increasing the rent?

Landlords may increase the rent for any number of reasons, as long as it is not contractually or legally forbidden. Some of the most common reasons include higher property taxes, higher cost of living, rising property value, higher landlord insurance premiums, etc. On the other hand, a landlord cannot raise the rent if it's ruled out in the lease agreement or outlawed by the local rent control law.

How should a landlord deliver a Notice of Rent Increase?

The landlord may decide to deliver the notice in person, via email, by mail, or arrange to have someone or a company deliver it to the tenant's door. The original lease agreement may specify how future documents are to be forwarded to be valid. Consult the lease before sending your Notice of Rent Increase.

What consequences can a landlord face if they neglect to send a Notice of Rent Increase?

The most obvious consequence is that a landlord would be unable to enforce the rent increase without a Notice of Rent Increase. A verbal agreement does not legally replace a physical notice.

When should a landlord send a Notice of Rent Increase?

If not otherwise prohibited by the lease agreement, a landlord can send a Notice of Rent Increase at any time. However, it is standard practice to inform a tenant at least 30 days in advance. Depending on your state and jurisdiction, there may be a mandatory notice period of at least 15 days.

Is there a limit to a rent increase?

There is no limit except if prohibited by law. In general, landlords can raise rents by 1-2% every couple of years without raising eyebrows. For difficult tenants, such as those who have a history of inflicting property damage, it is not unheard of for landlords to charge 3-4% or more, perhaps to recoup losses or as insurance against future damage. To avoid pricing your property out of the market, check rental rates for comparable properties to yours in the area.

Can I send this notice if I want to increase the amount of rent paid for a fixed-term lease?

This type of notice is not designed for use regarding fixed-term leases. Without a mutual agreement, the landlord cannot raise the tenant’s rent in the middle of the fixed term.However, since fixed-term leases don’t automatically renew, an increase in the rent will be an aspect included in the renegotiation of the lease.

How do I deliver a Notice of Rent Increase?

Generally, you will deliver a notice of rent increase either by mail - first class, registered, or certified - hand delivery, or door affixation. You should still check your state’s tenant laws to ensure compliance.

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