There are many reasons landlords need to raise the rent on their property. They may need to keep up with the market, especially if the neighborhood has improved. All of the rents in the improved area will be higher. Another reason for a rent increase is home improvement.
If the building has been upgraded with a new kitchen, deck or other improvement, the landlord will be able to get a higher rent. Finally, if the landlord’s property taxes or insurance premiums are raised, he or she may need to raise the rent just to be able to keep the property.
The landlord must research the ordinances in the city where the property is to make sure he or she is allowed to raise the rent. These laws are governed by the jurisdiction in which the letter is written. The landlord must comply with the local statutes before they can legally increase rent.
There will be a legal number of days before the higher rent goes into effect. It may be two weeks, 30 or 60 days. The letter must arrive in the tenant’s hand before this timeframe.
This guide is intended for landlords who are within their legal boundaries. Most landlords can raise the rent when the lease expires. They may also be able to raise it if the original lease has a clause that allows the rent to be raised.
The letter will be a record of the notification of the rent increase. It’s a simple way to avoid misunderstandings or delays about the amount of rent the tenant owes. It’s also an opportunity to restate the date the rent is due, the policies for late payment and how the rent is paid.
The letter should contain:
• The purpose of the letter
• The exact amount of the raise and the new amount of rent
• The date the new rent will begin
• The reason the landlord needs to raise the rent
• The official name of the tenant should be used, not a nickname
It is recommended to give contact information, so the tenant can talk to the landlord either over the phone or in person. The tenant may want to ask detailed questions about the reason for the rent raise and may even get angry with the landlord.
The landlord should explain the reasons as clearly as possible and let the tenant vent their frustrations. If the landlord wants to keep a tenant but has no choice but to raise the rent, he or she may want to consider raising it in increments to make it easier on a good tenant.
By Andre Bradley