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How to write a rent increase letter (with sample notice)

Oct 9, 2023 | Landlords

As a landlord, one of the necessary but potentially uncomfortable tasks you may face is increasing the rent for your rental property. While it’s a business decision, it’s essential to handle it professionally and communicate it clearly to your tenants. In this article, we will guide you through the process of writing a rent increase letter, including providing a sample notice template to help you navigate this process smoothly.

Step 1: Check legal requirements
Before drafting a rent increase letter, it’s vital to understand the legal requirements and regulations governing rent increases in your jurisdiction. Rent control laws and regulations can vary significantly from one place to another. Ensure that you comply with the local laws and regulations regarding rent increases.

Step 2: Determine the appropriate amount
Consider market conditions, inflation rates, and the competitive rental market in your area when deciding on the amount of the rent increase. Be sure that the proposed increase is fair and reasonable. A sudden and significant increase may cause tenant dissatisfaction or even lead to them vacating the property.

Step 3: Prepare the rent increase letter
Here’s a step-by-step guide to drafting a rent increase letter:

  1. Header: Begin the letter with your name, address, and contact information.
  2. Date: Include the date of the letter.
  3. Tenant’s information: Address the letter to the tenant by their full name. Include their address in the letter as well.
  4. Opening paragraph: Start the letter by expressing your appreciation for the tenant’s tenancy and their compliance with the lease terms.
  5. State the purpose: Clearly state the reason for the letter, which is to inform the tenant about the upcoming rent increase.
  6. Proposed increase: Mention the current rent amount, the new rent amount, and the effective date of the increase. You may also include the percentage increase and the new total monthly or weekly rent.
  7. Justify the increase: Briefly explain the reason for the rent increase. This could be due to rising property maintenance costs, property taxes, or market conditions.
  8. Offer a lease renewal: If the tenant is on a fixed-term lease, you can offer them the option to renew the lease with the new rent amount.
  9. Closing paragraph: Express your desire to continue a positive landlord-tenant relationship and invite the tenant to contact you with any questions or concerns.
  10. Closing: Sign the letter and provide your contact information for further communication.
Sample Rent Increase Letter

[Your Name] [Your Address] [City, County, Post Code] [Your Phone Number] [Your Email Address] [Date]

[Tenant’s Name] [Tenant’s Address] [City, County, Post Code]

Dear [Tenant’s Name],

I hope this letter finds you well. I want to express my appreciation for your tenancy and for being a responsible and reliable tenant.

I am writing to inform you that, regrettably, we will need to increase the rent for your property, [Property Address]. The current monthly rent is £[Current Rent], and beginning from [Effective Date], the new monthly rent will be £[New Rent]. This represents a [Percentage]% increase.

The decision to raise the rent is due to increasing property maintenance costs, property taxes, and changes in the local rental market. We understand the importance of affordability and have kept the increase as reasonable as possible.

If you wish to continue your tenancy at the new rate, please let us know, and we will provide you with a lease renewal agreement reflecting the updated terms. We value your presence as a tenant and would like to continue our positive landlord-tenant relationship.

If you have any questions or need further clarification regarding this rent increase, please do not hesitate to contact us at [Your Phone Number] or [Your Email Address].

Thank you for your understanding and cooperation. We look forward to your continued stay at [Property Address].


[Your Name] [Your Signature]

When writing a rent increase letter, it’s essential to be transparent, respectful, and compliant with local regulations. Providing clear communication and reasonable justifications for the increase can help maintain a positive landlord-tenant relationship during this process. Be prepared to address any questions or concerns your tenant may have, and consider their feedback as part of the negotiation process, if applicable.


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