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Rent Increase Letter Template

Image 1

Created by:

​[Landlord.FirstName][Landlord.LastName]​

​[Landlord.Company]​

Prepared for:

​[Tenant.FirstName][Tenant.LastName]​

​[Tenant.Company]​

(All Occupants and Tenants in possession of the property)

The property being located at

​[Property.StreetAddress], [Property.City], [Property.State], [Property.PostalCode], [Property.Country].

A rent increase letter is a communication from the landlord to the tenant. It may be sent after the lease has expired, or it may be sent as a notice that the landlord intends to raise the rent in the future.

In either case, the letter should be written clearly and concisely so that its message is understood by both parties. The letter should also include all relevant information about what is changing and why it is changing.

Dear, [Tenant.FirstName]​

We are writing to inform you that we will increase your rent, effective from (Insert date). The new monthly rent will be ($Amount) from the current amount of ($Amount), which is an increase of ($Amount).

The paragraph below is the “why” of the rent increase. It is important to make the tenant understand that the reason for the rent increase is valid and fair and not just because of something whimsical. If you wish, you are free to edit the paragraph below and go into more detail about why the rent is increasing.

We have made this decision after carefully considering all relevant factors and feel confident that it is a fair reflection of the current market conditions. We are committed to providing our tenants with an excellent living experience, and we believe this rent increase will help us meet that goal.

You could also attach an addendum or separate document showing a comparison of rent on similar properties in the area. This will help the tenant understand what’s going on in the market and how your property stacks up against the rest. This is especially important if the rent hasn’t been changed for a long period or if the property is located in a growing area.

The purpose of this letter is solely to serve as a notice of the rent increase. The paragraph below emphasizes that only the rent amount in the lease agreement will be changed and that the other terms are the same as agreed upon.

This notice is independent of any other change in your lease terms and will act as an addendum to the original lease. All other terms and conditions of the original lease agreement remain unchanged and in effect.

We hope you understand why we have chosen to make this decision. If the terms of these changes are unacceptable, you may decide to terminate the rental agreement, and you will then be required to vacate the premises.

It is important to provide the tenant with a quick way to contact you as they might want to discuss the rent increase. The tenant might have questions, wish to negotiate the increase, or convey their decision on whether they wish to continue the rental agreement under these new terms.

You could also add your address below to give the tenant the option to meet and discuss this matter with you in person.

If you have any questions or concerns or wish to discuss this rent increase, please feel free to reach out to us at [Landlord.Email] or [Landlord.Phone].

​

Signature
MM / DD / YYYY

​[Landlord.FirstName][Landlord.LastName]​

​[Landlord.Company]​

Proof of Service

This section of the letter serves as legal proof that the Rent Increase Letter was served by the landlord to the tenant. This is useful when tenants claim to not have received the notice and attempt to invalidate the rent increase.

I certify that on (Insert the date the rent increase letter will be delivered to the lessee), I served this notice to [Tenant.FirstName][Tenant.LastName] by (Insert how this letter was sent, either through email, personally, or courier.)

​

Signature
MM / DD / YYYY

​[Landlord.FirstName][Landlord.LastName]​

​[Landlord.Company]​

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FAQ

  • If you’re a landlord, you have the right to increase your tenant’s rent after a certain period has passed. You can also do so if there is an increase in expenses for maintenance or utilities. (Check your state’s laws for specific regulations.) To increase the rent, you’ll need to send your tenant a written notice at least 30 days before the date on which they’ll be charged the new, higher rate.

    PandaDoc provides you with a free Rent Increase Letter template that you can use to notify your tenant of a rent increase.

  • The most a landlord can increase rent depends on state and local laws. Generally, a landlord can increase the rent by the percentage change in the Consumer Price Index (CPI) plus the maximum allowable rent increase according to state and local laws. 

    Some states, such as California, have rent increase regulations that allow a landlord to increase rent by a maximum of 5% per year. However, there are also states like North Carolina with no rent control, meaning landlords can increase the rent as much as they want.

  • The rent increase for 2022 is 9.1%. This increase is based on the Consumer Price Index (CPI), which measures the average change in prices of goods and services.

  • A landlord can raise rent month-to-month depending on state and local laws. The amount of increase has to be legal and fair. In some states, the landlord can only raise your rent once every 12 months, while in other states, they can raise it as many times as they like.

  • Yes, a landlord can increase rent by $100 or however much they want as long as it complies with state and local rent regulations (if there are any). 

Disclaimer

Materials (e.g. templates, educational articles, blog posts and informational content), made available through PandaDoc, including via any integrations, connectors, extensions, plugins, or third-party AI platforms (e.g. ChatGPT, Claude, or similar tools) are for general information purposes only and are provided "as is." These materials do not constitute legal, regulatory, or compliance advice and should not be construed as such. It is your responsibility to ensure materials meet your specific legal requirements. Consult a qualified attorney licensed in your jurisdiction before relying on these materials. PandaDoc disclaims all warranties, express or implied, including fitness for a particular purpose or non-infringement.

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Rent Increase Letter Template

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Use this Rent Increase Letter Template to notify the tenant that the rent will go up in the future or to send it after the lease has ended. You can get it for free from PandaDoc.

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