How to Write a Friendly Rent Increase Notice

Just like monthly rent collection, sending tenants a Notice of Rent Increase is a reality of the landlording business. Expenses go up every year, and the rental market evolves. Additionally, you need to invest in property maintenance and improvements.

Even though you understand why rent increases are significant, it’s not always the most comfortable part of your job. After all, no tenant wants to open their inbox or mailbox to see that their monthly living expenses are going up.

To make the process as seamless as possible, top landlords communicate early, respectfully, and by the book. That’s where a polite, friendly Notice of Rent Increase comes in. It helps you minimize confusion, comply with local laws, and most importantly, maintain a good relationship with your tenants.

In this guide, we’re sharing tips for crafting a well-written raise rent notice that you can feel confident about — with a little help from property management software.

3 Reasons Why Rent Increases Are Necessary

Even though your tenants may want to keep their rent price where it is, you need to set your business up for financial success. Rental properties are long-term investments, and you need to periodically adjust your prices to operate sustainably. Raising your rent allows you to keep up with back-end finances and maintain a well-kept home for tenants.

In other words, great landlords don’t just raise prices because they feel like it. They’re motivated by costs, value, and long-term viability. Here are a few of the most common reasons why landlords increase their rent:

1. Changes in the Local Market

Landlords don’t pull rent prices out of the blue. Instead, property owners carefully calculate prices to reflect the local market’s supply, demand, and economic trends. When landlords raise prices wisely, they can stay current with competing properties and renter expectations.

2. Property Improvements and Upgrades

Beyond reflecting market trends, thoughtful rent increases allow you to reinvest in your property to keep it in tip-top shape. For example, you may need to generate more rental income to replace the roof, upgrade the appliances, or modernize the interiors.

These improvements do more than just keep tenants satisfied. They also extend the life of your property and reduce wear and tear. By being proactive, you can gradually address issues so you’re not left with a major overhaul down the line — and the expensive bill that comes with it.

3. Rental Maintenance

Generally, the cost of running a rental goes up every year, including:

• Labor
• Materials
• Insurance premiums
• Property taxes
• Utilities

Even if you’re not planning a large-scale renovation, landlords must keep the house’s major systems in good working condition. Raising your rent can help you cover the costs of maintaining the plumbing, electrical, and structural components of your property.

Understanding Warranty of Habitability Laws 

Almost every state enforces an implied warranty of habitability, requiring landlords to provide safe, habitable housing. While the specifics vary depending on your location, most warranty of habitability laws require landlords to provide:

• Heating
• Clean running water and access to hot water
• Essential utilities (electricity and sometimes gas)
• Basic sanitation, including safe sewage disposal, pest-free spaces, and no mold
• Structural safety (such as doors that lock and no collapsing walls)

Landlords who fail to meet their state’s habitability standards could face legal penalties. Depending on the situation, tenants may seek monetary damages, get an injunction requiring repairs, or exit the lease.

How Much Can Landlords Raise Rent? 

Before you calculate your increased amount, check your state and local landlord-tenant laws. Certain states have laws limiting the amount landlords can raise rent, such as:

California: State law caps rent increases at the lesser of 5% plus local CPI, or 10% (Cal. Civ. Code § 1946.2).

New York: For rent-stabilized units, the Rent Guidelines Board limits annual rent increases to 3% for 1-year renewals. On the other hand, rent-controlled units are capped by the Maximum Base Rent Program (MBR).

Washington: Washington law limits rent increases to 7% plus the Consumer Price Index or 10%, whichever is less (Wash. Rev. Code § 59.18.700 et seq.).

However, many states don’t regulate rent increases, such as Florida, Texas, and Colorado. As a best practice, always check your local laws or speak with a trusted real estate lawyer.

Timing Your Rent Increase Notification

After you’ve determined how much you plan to raise your rent by, the next question is, when should you notify tenants? And how often can you increase rent, in the first place? Here’s what you need to know about rent increase letters.

How often can you increase rent? 

State laws also usually limit how often landlords can raise rent. For fixed-term leases, you usually can’t raise rent mid-tenancy. If a tenant renews their rental agreement, you can adjust the price when they sign the new lease.

Beyond that, certain states have additional guidelines. For instance, landlords in California can raise rent only once every 12 months (Cal. Civ. Code § 1946.2). Similarly, Washington law prohibits price adjustments within the first 12 months. After the first year, landlords may increase rent only once per year (Wash. Rev. Code § 59.18.700 et seq.).

On the other hand, states like Florida and Texas don’t have specific laws governing these timelines. As always, check your state’s guidelines or speak with a lawyer for more insights about your circumstances.

How much notice is required for a rent increase?

From there, state and local laws usually specify the required notice periods for rent increases. For example:

California: For increases of 10% or less, landlords must give 30 days’ written notice. For increases over 10%, state law requires you to give at least 90 days’ written notice (Cal. Civ. Code § 827).

Colorado: Landlords must notify tenants in writing when they adjust the price. If you don’t have a written lease, state law requires at least 60 days’ written notice (Colo. Rev. Stat. § 38-12-701).

Florida: State law doesn’t require a specific notice period, but landlords typically give 15 days’ notice for month-to-month leases.

Hawaii: Landlords must give 45 days’ written notice for month-to-month tenancies (Haw. Rev. Stat. § 521-21).

Nevada: For month-to-month tenancies, Nevada law requires you to provide 60 days’ notice in writing (Nev. Rev. Stat. § 118A.300).

New York: State law requires landlords to give 30 days’ written notice for tenancies less than 1 year. However, landlords must give 60 days’ notice for tenancies of 1–2 years and 90 days’ notice for tenancies of more than 2 years (N.Y. Real Prop. Law § 226-c).

Oregon: Landlords must give at least 90 days’ written notice, making Oregon one of the states with the longest notice requirements (Or. Rev. Stat. § 90.323).

Texas: Like Florida, Texas law doesn’t specify a specific notice period. Most landlords give 30 days’ written notice for month-to-month leases.

Vermont: For month-to-month lease agreements, you must give tenants 60 days’ written notice (Vt. Stat. tit. 9, § 4455).

Washington: Landlords must give at least 60 days’ written notice before raising rent (Wash. Rev. Code § 59.18.140).

Always check your state’s specific laws to keep your leasing process compliant.

Beyond local requirements, it’s a best practice to give tenants as much time as possible to prepare for the adjustment.

How should you send a rent increase notice? 

When it comes to sending the Notice of Rent Increase, landlords have a few options. As the laws above show, most states require landlords to notify tenants in writing.

Some landlords prefer to hand-deliver the written notice, while others choose to send it via Certified Mail. Certified Mail incurs a fee, but it documents the process.

In addition to paper notices, landlords often send a digital copy by email.

Pro Tip: As a more secure alternative to email, consider using landlord software to notify tenants. You can also use it to collect rent online.

What to Include in a Friendly Rent Increase Notice

When it’s time to draft your Notice of Rent Increase, remember to keep it professional, friendly, and honest. Transparency builds trust with tenants, and a few kind words can go a long way in setting a positive tone.

A well-written rent raise notice includes the following details:

• Tenant information: Include your tenant’s name and a friendly greeting.
• Property details: Mention the property’s address, including the unit number, if applicable.
• Date: Include the date when you write the letter to cover the legal basics in case disputes arise.
• Current and new rent amount: Clearly list both the current price and the new, adjusted price.
• Reason for increase: Explain why you’re increasing the rent in a few words.
• Date when adjustment kicks in: Specify the date when the new rent amount is due.
• Copy of the lease: Include a copy of the lease agreement and mention any rent payment rules, including late fees.
• Tenant options: Whether you use a fixed-term or month-to-month lease agreement, explain that tenants can choose not to renew the agreement. If the tenant wishes to seek alternate housing, remind them of any required notice periods for terminating or not renewing the lease.
• Kind outro: End the letter with a few positive words.
• Landlord information: Sign off with your name and contact information. Invite tenants to contact you if they have any questions or concerns.

Follow these guidelines to create a legally sound, complete Notice of Rent Increase.

Best Practices for Writing a Raise Rent Notice

In addition to our helpful outline, keep these pro tips in mind when telling tenants about your new policy:

Craft a Positive Tone in Your Notice

Whether you’re answering a quick question or discussing a price adjustment, how you speak to tenants matters. Always use a friendly, professional tone that shows you acknowledge the tenant, whether it’s to encourage on-time payments or to take great care of your property.

We recommend being clear, respectful, and calm. It’s the best way to ease tension and help tenants understand and accept the change.

Address Tenant Concerns About Rent Increases

When you send tenants a notice, expect them to have questions. Maybe they’re wondering why the price is changing, or perhaps they’re concerned about future increases.

Try to put yourself in the tenant’s shoes and anticipate their concerns so you can provide the best possible answers. It’s a good idea to give the tenant context for the price change. For example, you can highlight market changes or upcoming property improvements.

Offer Options and Support for Tenants

If your tenant is struggling with the new price, try to be flexible where you can — especially if they’re a good, responsible tenant. Perhaps you extend them renewal incentives or payment plans to encourage them to stay in their unit.

Practice clear communication and invite tenants to discuss their situation further so you can reach an agreement that works for everyone.

How TurboTenant Helps You Create and Send a Notice of Rent Increase 

In summary, sending your tenants a friendly rent increase notice helps you run a profitable business, improve your property’s condition, and maintain a positive relationship with your tenants. We recommend writing your letter in a kind, respectful tone. And don’t forget to check your state’s laws governing increased amounts, notice requirements, and timelines.

To streamline your rental workflow, including lease renewals and rent collection, sign up for a free TurboTenant account. Or take it one step further by signing up for a Premium account to access our helpful landlord forms pack, including a Notice of Rent Increase. Our tech-enabled software makes creating and sending notices fast and easy.

Pro Tip: Always speak to a trusted lawyer or real estate professional if you have any specific questions. Check your state’s rental laws to keep your process compliant from start to finish.

Notice of Rent Increase FAQs

Disclaimer: This blog is for informational purposes only and is published by TurboTenant. It is not legal, financial, or tax advice. Laws and regulations for landlords vary by state and locality and may change over time. Always consult a qualified attorney, accountant, or local housing authority before making decisions related to your rental property. The publisher and authors assume no responsibility for actions taken based on the information provided.