When a landlord decides to increase the rent of a property and want to inform the tenants about the raise, he is required to write a formal letter with notification of the increase in the rent to the tenant and ask them to either agree with the increased rent or vacate the property within a specific duration of time. This letter is known as the letter to tenant for increase rent notification. This is a formal letter and very important from the point of view of local tenancy laws and regulations but it’s not mandatory for the landlord to hire an attorney to draft the letter but he can simply put few sentences on a simple page and inform the tenant about the new rent.
Brief Description of Letter to Tenant for Increasing Rent:
When landlord and tenants sign a tenancy agreement, one of the most important things that they discuss is the periodic raise in the rent of the property. It is possible that the landlord wants to increase the rent once in every 3 months with 5% increase where the tenants want him to increase the rent once every year with 8%. With the agreement, they both agree on mutual terms and conditions so that if there is any dispute or violation, they can present the agreement as a legal proof in the court.
In the tenancy agreement, it is also included that before the landlord increases the rent, he is required and legally obligated to inform the tenants formally and ask them to either agree to pay new rent amount or vacate the property in at least 10-15 days. This way we can say that if a landlord increases the rent of a property but doesn’t inform the tenants, the renters no longer obligated to pay the raise or vacate the building before at least 1 month so that if they don’t want to pay increased rent, they can easily search for another place in 30 or 60 days depending on tenancy agreements.
Sample Letter to Tenant for Increasing Rent
Subject: increase in rent
Date: 7 January 2015
I am writing this letter in order to inform you that it’s been 1 year since you are living in this apartment and as per our agreement; it is time to increase the rent up to 7%. So, I am writing this letter to you that from now on, the new rent amount for the apartment will be $1,320 per month and you need to agree with the increase of rent or you can consider this letter as the eviction notice with 30 days to find another place to live. I you want to talk or have a discussion, you can visit me in my office from 10am to 5pm in week days. I hope you will respect the agreement and decide what you want to do within next 48 hours.