Across the United States, rent is increasing. On average, it's gone up more than 5% between 2017 and 2022. Increasing costs are a simple fact of life, but it still pays to tread carefully when alerting a tenant to a rent increase.
Many landlords and property managers struggle when dealing with this issue. There are lots of moral and legal implications to take into account.
It's time to learn about a few of the simple do's and don'ts when writing a tenant rent increase letter. Keep reading for a few key tips!
Do: Keep it Simple and Professional
A rent increase letter should be simple and professional. You need to give key information in a clear manner. Don't waffle too much and make sure the tone isn't too friendly or hostile.
Remember, this letter will serve as evidence that written notice of rent increase was given. If the letter is unclear about the increase, you could face legal procedures.
Set out the rent increase amount in large, bold text. That way, no one will be able to dispute that you were clear about your intentions.
Do: Lay Out Your Rationale
No one likes to have their bills increased. And an increase in rent for tenants can cause tenants to become resentful.
Laying out your rationale can help to support better relationships with tenants. Explain why the rent is going up, whether it's to help with increased maintenance costs, a change in property taxes, or simply due to the passage of time.
Allowing your tenant to see your point of view can help them to feel better about the situation. This should help them to view the situation philosophically and help them to keep making their monthly rent payments.
Do: Follow Up
Did your tenant receive their letter and acknowledge it? Check that your message has reached its target. After all, you never know if your tenant might have thrown away the letter, thinking it was junk mail.
When you work with us, we will ensure the letter is delivered in a timely fashion. Then we'll follow up to ensure the tenant understands the rent increase.
Don't: Forget the Contact Details
Don't forget to include your contact details in the increase letter. Tenants should be able to contact you easily after receiving this letter. This allows them to raise any concerns or ask questions.
Your tenants should already have contact details for their landlord or property manager. But it never hurts to give a reminder.
Don't: Deliver it Too Late!
Ensure the letter is delivered at least a few months in advance of the increase.
This will keep you covered legally and will allow the tenants to make a change if they don't think they'll be able to cover the new rent.
Delegate Writing a Tenant Rent Increase Letter
Being a landlord is tough entailing a lot of different roles. By delegating certain tasks, like writing a tenant rent increase letter, you can save time for more important matters.
If you're looking for help managing your properties, we can help. From tenant screening to rent collection and everything in between, we've got you covered. Contact us today to find out more about what we offer.