Rent Increase Letter to Tenant

A rent increase letter or rent increase notice is usually of the concern of landlords when they decide to surge the expense paid to them in return for their property used by a person. A rent increase letter is written like an official letter to tenants, with this document one can make sure that all the necessary information is in writing so that there isn’t any confusion caused over the upturn in rent.

Such letters are documented when a landlord wants to notify the tenant about the increase in the monthly lease, a record is to be created regarding the increase in rent, or the ordinance of a particular city allows to increase the rent.

It is customary to increase the rent after each year by [X]% of the net cost of property rented. In the contract, the thing must be mentioned in order to avoid later confusion. However, a few property owners prefer to increase after a five years span yet it is not considered as a good practice as may lead to dispute due to an accumulation of expanse.

It is customary to send a letter highlighting that rent is going to be increased, it aware the tenant about the current scenario and besides this owner can also judge tenant’s intentions. In the letter, you may compliment the tenants due to their good traits of paying the rent on time, taking care of your property, etc. it is advised to write such a letter at least 60 days prior to the increment of fare.

A rent later is a way to eliminate any misconceptions that may arise regarding increment in rent among the two, tenants and landlords.


Subject: Rent Increase for [X]

Dear Johnson,

I hope you will be fine. The purpose of his letter is to inform you that I am going to increase the rent of the apartment in which you are currently residing on rent.  Effective from 1-1-20XX, monthly rent for the house located at 32- Park view road, Michigan, will be increased by 10%. According to clause X of our rental agreement which was signed between us on [date], it was agreed that I will be entitled to increase the rent by 10% per annum.

You also know that I have not claimed my right of rent increase since 2019 due to pandemics. Now, due to the high inflation rate and increased cost of living, I have been compelled to increase the rent.

As per our contract, our current lease agreement will terminate on 31-12-20XX. Now you will have to pay US$1500 as new monthly rent. It will be payable till the 5th of every month. This change along with other necessary amendments will also be incorporated in our new agreement for the next year. The current lease will be expired on 31 December 20XX. Remember, if you do not agree with the new rent, you must vacate my house on or before 1-1-20XX.

If you agree with all terms and conditions of the rental agreement including increased rent, you may stay there. For this, you must sign the new lease agreement and adhere to all the terms and conditions. I will visit your apartment within a couple of days for the same purpose. I will also send you a copy of the new agreement as soon as I receive it from the legal advisor.

Your stay in the apartment after the contract termination date will indicate that you are agreeing to pay the increased monthly rent and are ready to adhere to all other changes which will be incorporated thereon.

Your cooperation will be highly appreciated in this regard.



Rent increase letter


Subject: Rent Increase Letter for [X]

Dear Johnson,

I have never found such a great and caring tenant like you. I always appreciate the way you care for my property and make timely payments of the rent. As you know that our rental agreement will expire on the 31st of this month. For the upcoming year, I want to increase the rent by 5% of the current rental amount. For this purpose, I am sending you a copy of the new lease agreement along with this letter. If you accept it, your rental term will be extended to one more year subject to fulfillment of other terms and conditions.

Please note that if you agree with all the clauses of this agreement, you will have to pay US$ 1500 as monthly rent. You will be required to pay the rent by the 10th of every month.  

All other terms and conditions are the same except a few ones which will be indicated in the agreement. You have been residing in my property since 2019. Since then I have not increased a single penny in lieu of rent. But now, due to the increased rate of inflation and high cost of living, I was feeling it hard to meet all expenses. Therefore, I thought it indispensable to notify you about this increase. I know that you will also be facing the same pressure of inflation as me. Considering this fact, I have decided to increase the rent by 5% instead of 10%.

You are required to sign a new agreement and return the same to my office on or before the contract termination date. However, if you do not want to renew the contract, you must inform me before the contract termination date. Whatever your decision may be, you should inform me as soon as possible so that I could make the necessary arrangements in either case.

I say thank you again for taking great care of my property. It’s hard to find caring tenants like you. I hope at the same time that you will choose to remain a tenant at my apartment. In case of any queries, feel free to contact me.

Your cooperation will highly be appreciated.



Rent increase letter to tenant

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